Help Taxpayers

TaxConnections has received numerous calls from taxpayers wanting to reach out to a tax professional about their economic impact payment. There is a lot of confusion around why so many people have received one payment but not a second one or third one. This is likely a challenge for many tax professionals working with their clients and doing their tax returns.

As a tax professional, we appreciate hearing from you about what  your clients are experiencing with the economic impact payments. Knowing this will help so many taxpayers out there struggling to make sense of all of the payments that come and the payments that never arrived to taxpayers. It sounds like a huge ongoing mess and the voices of tax professionals sharing what they are seeing and hearing from taxpayer clients will go far in helping many taxpayers today understand why they are not receiving these payments.

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US DEPARTMENT OF JUSTICE
Puerto Rico U.S. Attorney’s Office And IRS-Criminal Investigation Warn Taxpayers About New Wave Of Covid-19 Scams As Second Round Of Economic Impact Payments Is Delivered

U.S. Attorney W. Stephen Muldrow and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement today in an effort to prevent taxpayers from falling victim to criminals.

In the last several months, IRS-CI has seen a variety of Economic Impact Payment (EIP) scams and other financial schemes designed to steal money and personal information from taxpayers. Criminals are taking advantage of the second round of Economic Impact Payments – as well as the approaching filing season – to trick honest taxpayers out of their hard-earned money.

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Many College Students May Still Qualify For An Economic Impact Payment

The Internal Revenue Service today urged any eligible self-supporting college student who doesn’t need to file a tax return to register by Nov. 21 so they can receive an Economic Impact Payment before the end of the year.

In advance of the National EIP Registration Day on Nov. 10 and highlighted in “A Closer Look,” the IRS is reminding people who don’t normally file a tax return they may be able to register for an Economic Impact Payment with a quick visit to the Non-Filers tool on IRS.gov. In particular, the IRS wants to remind self-supporting students with little or no income that they may be eligible for payments of $1,200 or more.

“The IRS is working hard with our partners across the country to raise awareness about the upcoming deadline to register for a payment,” said IRS Commissioner Chuck Rettig. “College students in particular should be careful not to overlook these payments if they’re supporting themselves and can’t be claimed as a dependent on someone’s tax returns. A few minutes of research could really help students.”

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IRS Releases State-By-State Breakdown Of Nearly 9 Million Non-Filers Who Will Be Mailed Letters About Economic Impact Payments

The Internal Revenue Service today released a state-by-state breakdown of the roughly nine million people receiving a special mailing this month encouraging them to see if they’re eligible to claim an Economic Impact Payment.

The IRS will mail the letters to people who typically aren’t required to file federal income tax returns but may qualify for an Economic Impact Payment. The letter urges recipients to visit the special Non-Filers: Enter Payment Info Here tool on IRS.gov before the October 15 deadline to register for an Economic Impact Payment.

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IRS To Mail Special Letter To Estimated 9 Million Non-Filers, Urging Them To Claim Economic Impact Payment By Oct. 15

Later this month, the Internal Revenue Service will start mailing letters to roughly 9 million Americans who typically don’t file federal income tax returns who may be eligible for, but have not registered to claim, an Economic Impact Payment. 

The letters will urge recipients to register at IRS.gov by Oct. 15 in order to receive their payment by the end of the year. Individuals can receive up to $1,200, and married couples can receive up to $2,400. People with qualifying children under age 17 at the end of 2019 can get up to an additional $500 for each qualifying child.

The letters are being sent to people who haven’t filed a return for either 2018 or 2019. Based on an internal analysis, these are people who don’t typically have a tax return filing requirement because they appear to have very low incomes, based on Forms W-2, 1099s and other third-party statements available to the IRS. But many in this group are still eligible to receive an Economic Impact Payment.

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Need Help With Economic Impact Payment Issues? How TAS Can Assist Those That Qualify

In our previous blog, we highlighted the IRS’s procedures to correct missing Economic Impact Payments (EIPs) and how TAS can assist some taxpayers. The table below sets forth the scenarios the IRS will currently resolve, what some individuals need to do before an EIP is issued, the scenarios where individuals will need to claim the correct payment on their 2020 tax return, the types of cases with which TAS can assist, and how taxpayers can get help.

The table identifies ten EIP scenarios. The IRS has corrected or will soon correct the EIP underpayments for the first three of these scenarios. For example, in the first scenario, an individual who used the Non-Filer Tool prior to May 17 and claimed at least one qualifying child may not have received the qualifying child portion of the EIP because of a programming error. The IRS has started issuing additional payments to these individuals, and we anticipate all additional payments will be received by the end of August. If for some reason the IRS’s current programing correction does not fix a specific individual’s situation in this scenario, TAS will be able to assist the affected individual.
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