Phil Marti wrote:
- quote -


The only time an RRC will be calculated and posted from Line 29
of the Worksheet to Line 70 of the 1040 is when you check the box
on Line 28 of the worksheet signifying that no ESP was received.
If you enter any entry (even a correct entry) on Line 28 of the
worksheet (Amount of ESP Received), TW computes the RRC but does
not post it to Line 70 of the 1040. This is consistent with the
new IRS instructions. The IRS only wants e-filed returns that
have an RRC on Line 70 for taxpayers that did not receive an ESP.
Any taxpayer that received an ESP and is entitled to some amount
of RRC will have that amount calculated by the IRS and the amount
will be sent to the taxpayer at a later date.

The net of all this is that you should only have an RRC on the
tax return for taxpayers who either did not file a 2007 tax
return or if they did file, the ESP was zero.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Mark Bole" wrote:

- quote -

The first good news I've had about this. There are too many different
stories floating around. Hopefully all will be clear by the time our VITA
site opens the 7th.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Mark Bole" <makbo[at]pacbell.net> wrote
- quote -





So later on, in another month or three, the IRS will issue basically a
correction notice that says "We've corrected your return.....here's the rest
of your RRC money" or something like that.







--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Phil Marti wrote:
- quote -


Who ever said there won't be a delay (in receiving the RRC) if the IRS
has to calculate the amount (of the RRC)? Since when does the IRS
correct math errors within the 8-15 day time window for issuing refunds?

As we know, the e-file return will be rejected if the advance amount
already paid does not match. However, since the IRS has noticed
extremely high error rates with the additional credit claimed on the
2008 return, they are moving any such returns into an error processing
queue for manual review.

IRS is expected to provide further information by Wednesday. As has
been mentioned, if you claim zero for RRC on your e-filed return, you
will get whatever remaining refund you are entitled to on the regular
schedule, then the IRS will calculate the additional amount of the RRC
and send that to you via the same method you received the original
refund (check, direct deposit, etc). This is similar to the treatment
received by those who under-report withholding, estimated payments, and
so on, AFAIK.

To date, the likelihood of a taxpayer obtaining a short-term loan based
on stimulus payment or RRC is at zero percent. Another blow to the
banking industry! ;-)

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 26, 4:03*pm, "Phil Marti" <prm20...[at]verizon.net> wrote:
- quote -

amounts claimed, it
is for ANY return claiming the credit--banks will deny RALs and though
the IRS will accept the
return, the refund will be delayed--you can elect to not claim the
credit on the return and the
IRS will calculate the credit and send payment (in approx. 4 weeks).

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Paul Thomas, CPA" wrote:

- quote -

Thanks, Paul. The only thing missing is an explanation of why it will delay
the refund if there's an incorrect line 70, but not if IRS has to calculate
the amount. It seems to me that they'd have to check the same records in
both cases, basically completing the worksheet based on the 2008 return to
calculate the credit, then going to the record of advance payments to
subtract the amount already paid.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Phil Marti" <prm20871[at]verizon.net> wrote
- quote -



I went back to see the email on the subject and here's the meat of it:

-------------------------------
........at least one BANK will begin DENYING RAL requests on any return with
Recovery Rebate Credit. Based on information from IRS, it is better to
claim ZERO than to claim the wrong amount. If a taxpayer claims ZERO, and is
entitled to an RRC, the IRS has indicated they will credit the taxpayer with
the correct RRC, and adjust the refund or balance due accordingly. But if
they claim the WRONG AMOUNT, then their REFUND will DEFINITELY BE DELAYED.
Based on this new information from IRS, our recommendation is to NOT claim
the RRC on any return, unless you have verified the amount of the RRC at the
IRS Website.





--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Phil Marti" <prm20871[at]verizon.net> wrote
- quote -






My tax software provider sent out an email late last week that indicated
that at least one RAL bank would not accept loans that showed any Line 70
amount and they placed the decision on the additional checking time by the
IRS.







--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Alan wrote:
- quote -

would need to have the correct amount of the stimulus payment in
order that the RRC on Line 29 of the worksheet that gets posted
to Line 70 of the 1040 is accurate. The error reject code is 269.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Phil Marti wrote:
- quote -

matches the IRS database the return will be rejected. The amount
that has to match is not necessarily what was received. The
amount received could have been less or nothing due to back
taxes, liens, back child support, etc.

Here is the IRS website for checking the amount in the database:
https://sa2.www4.irs.gov/irfof/IRSer...ectLanguage=en

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I'm hearing this morning that IRS didn't adequately plan for erroneous
claims of the Line 70 credit, so they're now delaying the refunds on all
returns claiming the credit until they have a chance to check the advance
payment amount.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >