Make Work for Tax Professionals, or, Aunt Rose, You Need to File a Tax Return

UPDATE: Late on April 1st, the IRS reversed course. To the question, “I am not typically required to file a tax return. Can I still receive my payment?” The IRS now states,

Yes. The IRS will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2018 or 2019. This includes senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return.

Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time.

Thus, as of April 1, 2020, seniors and others do not have to file a tax return.

The IRS released its guidance today on the “Economic Impact” payments. We were told that the IRS would look at Social Security Records, so taxpayers who did not have a filing requirement would not have to file.

Wrong. From the IRS Release:

I am not typically required to file a tax return. Can I still receive my payment.

Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.

The IRS will soon release guidance on that at irs.gov/coronavirus.

Call me unhappy. This tax season was bad to begin with, and then we have the Covid-19 outbreak, and now make-work.

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