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Never Underestimate the Bureaucrat's Lack of Imagination

Well, the official notice about how people not required to file a 2007 tax return get their pennies from Congress is out. I've got an idea! Why don't we have people who haven't filed a tax return in years and may be, shall we say, a little rusty, file a 2007 return? Just in case it's too error-free, let's also encourage some useless 1040 X's (from people whose 2007 returns already qualify them for the maximum check).

No chance any of them will mess up, nor that IRS will make any processing errors with the returns. I could be an IRS exec.

From the IRS Newswire:

"Recipients of Social Security, certain Railroad Retirement and certain veterans' benefits should report their 2007 benefits on Line 14a of Form

1040A or Line 20a of Form 1040. Taxpayers who already have filed but failed to report these benefits can file an amended return by using Form 1040X. The IRS is working with the Social Security Administration and Department of Veterans Affairs to ensure that recipients are aware of this issue. "'Some people receiving Social Security and veterans' benefits may not realize they will need to file a tax return to get the stimulus payment,' [Acting Commissioner Linda] Stiff said. 'To reach these people, the IRS and Treasury will work closely with the Department of Veterans Affairs, the Social Security Administration and key beneficiary groups on outreach efforts.'"

I love lumping veterans' benefits with SS benefits. Hope someone remembers to tell the CP-2000 computers.Life would have been so much simpler had they just dropped $100 bills from the Goodyear Blimp.

Reply to
Phil Marti
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I suggest that we herd these Social Security recipients into a classroom, hand out 1040As, have them fill out their names, addresses, etc show them where line 20a is, have them sign the forms and have them mail them in. That would fix the IRS.

On the other hand H&R etc could have a special and rake in $50 or so and do this for the clients

Reply to
Avrum Lapin

For the NET-SAVVY senior, how about FREE-FILE web programs.....?

Reply to
Taxmanhog

Trouble is you can't e-file a Zero $ AGI, so they will have to add $1 to interest to do it.

Reply to
ebetts3

It's not a $0 AGI. The AGI will be the amount of nontaxable SS or disability earnings.

Ira Smilovitz

Reply to
Ira Smilovitz

Ira, are you sure about this? All I saw was that they're to show the benefit on line 20a. If they then follow the instructions for line 20, 20b and, thus, AGI will be unaffected. Also,you couldn't just plop the total benefit in 20b, because that would wind up with phantom taxable income in many cases.

How veterans are supposed to cope with line 20 instructions with respect to a pension remains beyond my ken.

I tell ya, the blimp is looking better all the time.

Reply to
Phil Marti

Phil Marti raised this issue (regarding requirement to file, even if no tax due, in order to qualify for the "rebate").

FWIW, our TaxAide (TCE) Site is already seeing huge crowds who've heard they have to file a tax return -- even though they owe no taxes -- in order to qualify for the rebate.

And IRS news releases plus media stories are reinforcing this message. So we're e-filing lots of "no tax due" returns, because it doesn't seem fair to block these folks from qualifying for their refunds.

Indeed, Phil's "blimp distribution" idea looks better and better ...

Bill

Reply to
Bill

Well, now, the reason it's called AGI, which stands for adjusted gross income, is because it is gross income that is adjusted for such things as exclusions.

So yes, even though Gross income includes total social security, and for these purposes gross veterans benefits, AGI will still be zero, and thus not efilable.

Unless of course, IRS rallies and fiddles around with the layout specs for efiling.

ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

That's what I get for responding without looking. For some unknown reason, I thought 20a was actually 21 (other income) and that SS and VA recipients were being told to report the nontaxable portion as if it were other income and that the amount reported would be offset by the std deduction and personal exemption.

Forget I ever said anything. (please!)

Ira Smilovitz

Reply to
Ira Smilovitz

As a followup, I notice today that the IRS issued another press release stating that they are working with the tax software community to try to allow e-filing $0 AGI returns.

Ira Smilovitz

Reply to
Ira Smilovitz

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