no income

Is your income less than your exemption + standard deduction? If yes, then you don't have to file. Did you get unemployment compensation?

If you meet the filing requirement in the 1040 instructions file. If not, they won't be curious.

Check the 1040 intructions for the requirement to file. If your income is below the level required to file, then you don't need to.

Sometimes, tax returns are filed, even if not required, as there are third party reporting items such as 1099's for INT, DIV, or like in your case unemployment. This could help to avoid correspondence down the road. It also starts the statute of limitations to run.

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-----> real address on hobokeni or hobokenx

You're probably asking the question re the stimulus bill recently passed that provides for "rebates" for even those not required to file. An easy $300, right?

Well, I'm sorry to say that this kind of income is not "qualified income" and therefore won't do a thing to help you get the free money.

ChEAr$, Harlan Lunsford, EA n LA

Re: no income Group: misc.taxes.moderated Date: Thu, Feb 21, 2008, 9:02am From: snipped-for-privacy@lycos.com (Benjamin Yazersky CPA) On Feb 20, 11:20 pm, snipped-for-privacy@webtv.net (Spirit) wrote: I was unemployed in 2007 but do have interest and dividend income. Should I send in a tax form with that info even though it is so low I would not owe taxes. I thought this might be best in case they wondered why I didn't file anything. Thanks

I don't think anyone has yet addressed "Spirit"'s question. He's asking if the IRS come knocking if you don't file. Interesting question.

Suppose you are normally a filer, but have a year when you're not obliged to file because you're below the threshold requiring a return. If you expect to file in subsequent years, is it best to file at least something, even if you're not obliged to, to avoid the "evil eye" ??

Having worked non-filer cases in my IRS days, one of the things that the IRS does look at is the filing threshold. Generally, cases were assigned when the threshold was exceeded and a return presumed to be due. However, I do remember being assigned to a couple of cases where the threshold wasn't met. Usually, these were older people on social security living in high-cost areas where the SS payments didn't cover basic needs.

Therefore, it can happen but is unlikely. However, with all the people living beyond their means (cf. mortgage foreclosures, etc.), I would not be surprised if there were more "economic reality" audits coming down the chain....

How about an actual case that I know of that is happening right now.

Last several years earned 75-95K and filed. 2007 not required to file.

2008 will again earn 80+K and file. Reason: multiple surgeries and unable to work at all in 2007 resulting in zero (taxable) income.

Would this raise a flag if a 0 income return for 2007 is not filed?

Not a red flag per se, however maybe a year down the road he may get a letter calling his attention to the fact that no return filed, and .. something like,,, 'hey, did you forget?"

In this case he will then respond with explanation.

ChEAr$, Harlan Lunsford, EA n LA

Thanks Harlan, I will let it go for now and deal with it if and when it's questioned -- if ever.