IRS Rev. Proc. 2008-21

[ecb34691]

In case you missed it. IRS says (and encourges it) to put $1 in some field to make the "StimRets" have a non-zero AGI and thus e-fileble. Some are using the interest line 8 with the "bank name" Stimulus and $1. They are never going to be able to handle 20+ million more paper returns this year. edited 21:56 - the link is IRS.gov/pub/irs-drop/rp-08-21.pdf

[RLymanC]

Mmmmmm

This is the only thing GOOGLE came up with on a search:
IRS Rev. Proc. 2008-21 - TMI Message Board.

I can't find anything that will allow an e-file for the Stimulus return. On the contrary, I read or heard somewhere that puting a $1.00 AGI would would reject the Stimulus return.

[ecb34691]

$1 AGI does work. I did a return today that had SSA of $12000 and bank interest of $1, AGI = $1, IRS acknowledgement tonight at 7:26pm!! I've done about 15 of these returns in the past week, all e-filed, all accepted. Must admit, today was the first one with just $1 AGI - others had a little interest or retirement amounts, but otherwise no need to file.

[Zee]

This is the only thing GOOGLE came up with on a search:
IRS Rev. Proc. 2008-21 - TMI Message Board.

I can't find anything that will allow an e-file for the Stimulus return. On the contrary, I read or heard somewhere that puting a $1.00 AGI would would reject the Stimulus return.

It's in the last paragraph of the Administrative Procedure linked by the first poster.

[RLymanC]

IRA Ack's

I have no doubt that the IRS will accept the E-filed return, what I'm concerned with is will they issue the refund. The special form they require is not yet available.

I've searched everywhere, I still can't find a thing that will allow your procedure.

[ecb34691]

The "special" edition of the paper return has been available since 2/22, when IRS showed a 1040a with the words "STIMULUS PAYMENT" across the top.

[RLymanC]

I Agree

But is the e-file version of that form formatted properly???

My software company has not provided an upgrade that will allow the stimulus version of from 1040 or 104A to be e-filed.

I'm not being hard headed, but I strongly feel that an e-filed retrun with a $1.00 AGI is not going to fly without the proper revision to form 1040 and 1040A, then you won't need a $1.00 AGI.

[David1980]

This is the only thing GOOGLE came up with on a search:
IRS Rev. Proc. 2008-21 - TMI Message Board.

I can't find anything that will allow an e-file for the Stimulus return. On the contrary, I read or heard somewhere that puting a $1.00 AGI would would reject the Stimulus return.

http://www.irs.gov/pub/irs-drop/rp-08-21.pdf

For some reason if you go to http://irs.gov/pub/irs-drop/rp-08-21.pdf it's not there, but if you go to http://www.irs.gov/... it is.

01 An individual, within the scope of this revenue procedure, who wishes to
electronically file an income tax return may enter $1.00 of income in the Income section
of the return and at least $1.00 of adjusted gross income even though the return
prepared as instructed in Notice 2008-28 would otherwise show no adjusted gross
income.

So the $1 income thing is legitimate.

As for waiting for the "special version" of the 1040A, I imagine a lot of software companies are just going to tell their customers to use a form 1040A, since the special version is a form 1040A. I wouldn't be surprised at all if a lot of software companies never produce the "special version" in their software.

[bertrans]

Thanks to the OP.

I posted a link to this yesterday. The language reads: 'The IRS will not challenge the accuracy...' of returns where $1 is entered as AGI in order to e-file.

Title of the post: Good to Know.

[thomtax]

Drake software

Drake software has a box in the print screen that, for those that are only filing to get the rebate, when checked will produce the 1040A with "Stimulus Payment" printed at the top of the form.

LT

[Jesse]

Drake software has a box in the print screen that, for those that are only filing to get the rebate, when checked will produce the 1040A with "Stimulus Payment" printed at the top of the form.

LT

Just curious, can you efile this or does it have to be printed & mailed?

[Koss]

Stimulus Payment Return

I'm going to express an educated opinion here, based on 20 years of experience. I don't have specific documentation from the IRS website or anywhere else to support this. But I believe what I am about to say is supported by the information that is already posted on the IRS website.

There is no "special version" of any tax form for the stimulus payment. The IRS posted a modified graphic version of Form 1040A in order to educate taxpayers who are preparing their own form on how to file the form even though they are not required to file.

Writing "stimulus payment" across the top is not required. For those that file by mail, it will help route the forms for faster processing. I'll bet the IRS is planning to hire, or has already hired, hundreds, or even thousands, of temps who will be trained only to process stimulus payment returns. So if you leave those words off and file by mail, the return will be routed into the regular processing queue, and the rebate check will take longer.

The checks will be generated based on the data that is entered into the IRS computer systems, regardless of whether the return is filed by mail or electronically, and regardless of whether it says "stimulus payment" across the top, and regardless of whether it is on some "special form."

If the taxpayer has the right kind of qualifying income, they will get the check.

The key, for most of these folks, is entering the social security benefits into your software correctly. This step will cause the gross social security benefits to populate on line 14a of Form 1040A. Line 14b will be zero, because none of the benefits are taxable. But the figure on line 14a is still transmitted to the IRS as part of an electronic return. If the return is filed by mail, the data from line 14a will be entered into the IRS systems when the return is processed. This is the qualifying income that makes the taxpayer eligible for the stimulus payment.

And this is why using $1 of interest income works. It isn't the zero AGI, or the $1 AGI, or the words "stimulus payment" that qualify the person for a check. It's the entry on line 14a.

Yes, there's a little bit more to it than this. Other types of income qualify. Pensions and annuities are entered on line 12a. But the concept is the same.

Burton

[RLymanC]

From notice 2008-21

For now, taxpayers in this group filing a tax return can only file a paper copy of the Form 1040 or Form 1040A. The IRS is working to update its systems to accept electronic versions of these limited-information returns for taxpayers who otherwise have no need to file a tax return. The IRS is also working with the software community to handle these returns electronically at a future date.

Where does this $1.00 idea come from???

[outwest]

The IRS..

that's the workaround with the 'software community' to process these. Put in the $1, the SS benefits, efile and get out of Dodge..

The IRS has officially promised not to bother us if we do that..

This is the short version of Burton's usual thorough and complete discussion.

[Koss]

Further Observations

It appears that the IRS website was just updated within the last hour or so, with more detailed information. The IRS is now explicitly advising those who receive veteran's benefits to report the benefits on line 14a of Form 1040A, even though this line is labelled for social security benefits.

The IRS notice that is the original subject of this thread actually provides a great deal of support for my original comments.

The IRS document that refers to a "special form" is news release or a simple IRS notice. It is not, as stated in the title of this thread, a revenue procedure. The relevant text of the notice in question, IR-2008-21, reads as follows:

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.

I don't want to beat a dead horse, but there is no "special version" of Form 1040A. It is simply a graphic guide that helps people understand which lines to use.

Burton