EIP 1 and EIP 2

[Jon-L]

Is it true that if we don't enter the correct EIP payments that our returns wont be accepted.  Some of my clients haven't received their EIP 2 even though IRS website said they were mailed over a month ago ?

I don't want rejected returns so even if the client doesn't have EIP 2 I should tell my software they do?

[IRonMaN]

Tell your clients your concerns and let them make the choice.  It's usually safer to go the conservative route and say they got the payments and then sort things out down the road, but some of your clients might like to run with scissors and go the other route.

[Just-Lisa-Now-]

They wont be rejected, but if the numbers are wrong, be ready for a refund delay and a math correction letter.

[BobKamman]

Your clients were probably mailed debit cards and did not recognize what they were, so tossed them out as junk mail.  IRS told us last month that if people don't claim a recovery rebate credit to which they are entitled, it will be allowed anyway.  So don't claim it on the return -- help them join the long line of people who are asking, "What payment?"  And make sure they don't miss the next big one.  Are they getting a refund?  Are you filing with the direct-deposit information?  (Not that IRS used that when available, last time.)

[qbteachmt]

"even though IRS website said they were mailed over a month ago ?"

Did you confirm everything yourself? And why don't you just wait a bit longer? E-filing has only been open for Two Days. On the national news, they keep having stories on USPS delivery being late. One gal last night mentioned a Dec 22 Christmas Card that just got delivered to a friend.

Stimulus info can be found at these links:

https://www.irs.gov/payments/view-your-tax-account

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

https://www.irs.gov/coronavirus/get-my-payment

https://www.irs.gov/coronavirus/second-eip-faqs

https://turbotax.intuit.com/stimulus-check/

And: "The IRS said you can check the status of your second stimulus payment at IRS.gov/GetMyPayment (GMP).

If GMP reflects a direct deposit date and partial account information, then your payment is deposited there. If the payment was mailed, it may take up to three or four weeks to receive the payment. Watch your mail carefully and be sure not to throw out your payment.

If GMP shows “Payment Status #2 – Not Available,” then you will not receive a second stimulus check and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return."

Here's a link to the image for seeing the payment(s) on an account transcript image example, which you can get for them or they can get for themselves:

https://www.irsmind.com/irs-notices/irs-transcripts-now-provide-stimulus-payment-information/

Good luck.

[Jon-L]

So you kinda lost me here

"don't claim a recovery rebate credit to which they are entitled, it will be allowed anyway"

Are you saying to enter on the return as if they never received it (ie 0) and the IRS will send it again even if the taxpayer threw it out as junk mail ?

[BobKamman]

No, I'm saying don't claim a credit on the return -- as if they had received it -- and IRS will correct it if that's wrong.  But if IRS already says that it was sent, don't expect that result, unless maybe the check was returned and redeposited already.

Anecdotes are nice, but the debit card was not a Christmas card, in a non-standard envelope with handwritten address.  You can wait for it in the mail until Texas freezes over (that's actually happening in some places) but don't expect a miracle.  

[qbteachmt]

Okay, I have no idea why this is being stated here: "Anecdotes are nice, but the debit card was not a Christmas card"

What does that have to do with Doing Something about this?

Let's review your Due Diligence: You get the client to tell you what they know, and if they did not "do the work" to investigate, you do it. Then, If there is every indication their stimulus for 2020 is "out there" you don't claim the credit. If they never get the Card or Check, and you confirmed there was no direct deposit that they conveniently didn't recognize, you can get a replacement check or card. That was true for the first EIP, too.

But you won't know until someone checks the EIP Status and their Tax Account transcript.

[BobKamman]

@qbteachmt "One gal last night mentioned a Dec 22 Christmas Card that just got delivered to a friend."

I have no idea what that has to do with Doing Something about this either, but where I come from it's  considered quaint to refer to women as "gals."

[qbteachmt]

Okay, @BobKamman 

As I previously pointed out, the participants in a topic already get notifications from your update; you don't also need to Call Out their name. You can use Call Outs to get the attention of someone not already participating in the topic.

You seem to have overlooked this sentence: "On the national news, they keep having stories on USPS delivery being late."

As a Johnny Carson skit: "How Late was it?" Answer: well, that lady's was pretty late.

"it's considered quaint to refer to women as "gals.""

And excuse me for using Gal, but I am in Montana. And that's what we are.

[Jon-L]

Great .... lets just wait longer !

I'm already sitting on 90% of my returns waiting on an answer for AB 281 to see if the PPP's are tax exempt for CA.  Now we're supposed to wait to see if everyone gets their stimulus checks in the mail. Many clients don't have a clue and after the IRS adjusts their refunds or balances due I'm looking forward to the 100's of phone calls saying "what did I do wrong ?"

Oh well we still have 56 day left to do all these returns 🙂

[dascpa · Accepted solution]

Facts - few to none are going to get an account transcript even if we ask them nicely.

In my office whenever we have a difference of expected stimulus to actual stimulus we send out with the return on a separate page (neon yellow) a memo explaining (a) the situation, (b) telling them the extra recovery included in their return,(c) point to the Recovery Rebate Worksheet we are including in the return, (d) informing the client that should the IRS state the Stimulus 2 is "in the mail" or whatever other issue, there may be an adjustment to the return.  We just don't know how they will do this: adjust the refund, send a letter, send a CP2000 or whatever notice, etc.  

By being upfront the client knows we did our best to handle this bungled situation.