Tax News

CCH (cch.taxgroup.com) reports:

  The IRS reminded qualifying retirees and veterans that it is not too late to file for an economic stimulus payment. The IRS will send a second set of information packets to 5.2 million people who may be eligible but who have not yet filed to receive their stimulus payment. The packages will contain instructions, an example Form 1040A return showing the few lines that need to be completed, and a blank Form 1040A. The packages will be mailed over a three-week period starting July 21.

  The IRS has accounted for about 75 percent of the approximately 20 million Social Security and Veterans Affairs beneficiaries identified as being potential stimulus recipients. About 5.2 million of those have not filed a return or were not eligible for a stimulus payment

  Taxpayers were also reminded that the IRS has more than 400 local Taxpayer Assistance Centers operating normal business hours Monday through Friday that can provide assistance to retirees and veterans trying to receive their payments. A list for addresses and office hours can be found on the IRS website at Contact My Local Office.

  The Economic Stimulus Act of 2008 (P.L. 110-185) provided for payments of up to $600 ($1,200 for married filing jointly) for taxpayers who normally file a tax return and have a tax liability. Recipients could receive another $300 for each eligible child younger than 17. The Act also created a special category for people who had certain types of income but may not file a tax return because their income is too low or their income is nontaxable. Taxpayers in this category must have at least $3,000 in qualifying income to be eligible for the minimum amount of $300 ($600 married filing jointly). Qualifying income is the total of Social Security, Veterans Affairs and/or Railroad Retirement benefits plus earned income, including nontaxable combat pay.

IR-2008-91,
2008FED ¶46,524

Other References:

 
Code Sec. 6428

  CCH Reference - 2008FED ¶38,869.60

  Tax Research Consultant

  CCH Reference - TRC INDIV: 57,900