Discussion:Economic Stimulus Payment Owed, But Not Paid
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Discussion Forum Index --> Tax Questions --> Economic Stimulus Payment Owed, But Not Paid
| 6 November 2009 | |
| I filed my client's 2007 tax return on October 15, 2008. (He is a major procrastinator.) He was entitled to an $1,800 Stimulus Payment. In Jan 2009 he received a notice from the IRS saying that they were not able to process/mail his Stimulus Payment by Dec 31, 2008 (which they were required by law to do) so he would not be receiving the payment. They said he may be able to claim a credit on his 2008 tax return. Well his income was a lot higher in 2008 so he only qualifies for $400 of the rebate.
This just seems ridiculous and totally unfair to me, but I don't think there is anything that can be done about it. I'm not looking forward to explaining to my client that his procrastination cost him $1,400. I'm afraid he may think I did something wrong, which is not the case. Have any of you experienced this??? | |
| 6 November 2009 | |
| I forgot to mention...
This year he procrastinated even more and I am still waiting for some information to finish his 2008 tax return, so it will be filed late. Will he be entitled to the Recovery Rebate Credit on a late filed return? Thanks. | |
| 7 November 2009 | |
| I suppose whether it's unfair is in the eye of the beholder...since the stimulus payment was essentially based on taxpayers' 2008 tax situations, but issued in advance in 2007. Those who qualified for additional stimulus payment would calculate the extra, those who received more than what should have been allowed, could keep what they received.
This seems to be now a situation where he's filing separate from the spouse and two children? If she filed in 2008, I think she'd have received up to 1200 assuming below the income threshold. So your client lost out by procrastinating. But he should still receive the 400 on a late filed return. | |
| 9 November 2009 | |
| No, he's filing a joint return for both years.
Maybe I can soften the blow by explaining your first paragraph to him. That's a good way to present it. Thanks for the idea. | |
Death&Taxes (talk|edits) said: | 9 November 2009 |
| Easier to say, "You snooze, you lose." Then duck! | |
| 10 November 2009 | |
| The advance payment of the economic stimulus was based on the 2007 return, but the law prohibited the IRS from issuing any advance payments after 12/31/08. If the client waited until 10/15/08 to file the 2007 return, then the client should have made room for the possibility that the IRS might not be able to process the 2007 return and issue the advance payment by 12/31/08. | |
| 10 November 2009 | |
| I guess it never occurred to me, and surely not to my client, that it would take the IRS longer than 2 1/2 months to process the payment on an electroncially filed tax return. I don't remember reading any type of warnings that this could possibly happen. | |
| 11 November 2009 | |
| I had a client who snail mailed the 2007 return on 10/15/08 with a direct deposit of the refund requested. Got both the refund and the Stimulus amount in about 4 weeks. I'm wondering why your taxpayer's was held up. | |
| 11 November 2009 | |
| KathiJud - I guess the one difference between our situations is that my client owed money with his 2007 tax return and sent in a check so the IRS did not have his direct deposit information for the stimulus payment. But still, it seems the IRS should have had plenty of time to mail the payment to him. | |
