Will the TP's spend their rebate?

[iplawyer]

Thoughts?

[ASITStands]

Will tax protesters [or, frivolous non-filers] receive rebates?

I don't believe they did last time. May be wrong. I believe the rebates are based on having filed recent returns [and, I don't mean frivolous returns]. Last known address and all that.

[The Observer]

It's a good question. I think it could be probably answered by surmising how many of those same TPs who stamped "Refused for Cause" in red ink on the outside of the unopened IRS envelope and returned it to their local service center.

[Quixote]

I haven't read the act, but a summary of the economic stimulus payments (esp) (they're not rebates) indicates that the recipient must have had at least $3,000 in adjusted gross income. I can't think of any better source for that information than the would be the recipient's income tax return. If Joe Blow's return shows zero income, no esp for him.

http://www.treas.gov/press/releases/rep ... amples.pdf

[Judge Roy Bean]

By definition, "rebate" implies taxes were at least collected.

[Imalawman]

By definition, "rebate" implies taxes were at least collected.

Yeah, you've got to have 'bated first....

[Mr. Mephistopheles]

Will tax protesters [or, frivolous non-filers] receive rebates?

I don't believe they did last time. May be wrong. I believe the rebates are based on having filed recent returns [and, I don't mean frivolous returns]. Last known address and all that.

IIRC, the rebates will be based upon the 2007 returns.

[Prof]

I'm waiting for the geniuses at Sui and at Lost H. to begin to analyze how non-taxpayers qualify for rebates even though such non-filers are not 14th Amendment Citizens, etc., etc.

[ASITStands]

I'm waiting for the geniuses at Sui and at Lost H. to begin to analyze how non-taxpayers qualify for rebates even though such non-filers are not 14th Amendment Citizens, etc., etc.

That should be fun!

And, welcome 'Mr. Mephistopheles!' Your response was on target in my opinion.

[Mr. Mephistopheles]

I'm waiting for the geniuses at Sui and at Lost H. to begin to analyze how non-taxpayers qualify for rebates even though such non-filers are not 14th Amendment Citizens, etc., etc.

That should be fun!

And, welcome 'Mr. Mephistopheles!' Your response was on target in my opinion.

Yes, that will be fun to watch the tax deniers, esp. the 14th amendment clowns trying to weasel in on a handout. Do you suppose they'll demand theirs in gold bullion, since FRN aren't "real" currency?

Thank you very much for the greeting. I'm already enjoying Quatloos very much. Doktor Avalanche gave me the tip to come on over.

[Doktor Avalanche]

Thank you very much for the greeting. I'm already enjoying Quatloos very much. Doktor Avalanche gave me the tip to come on over.

And I was correct in assessing that you were indeed Quatloos material.

[LPC]

According to the IRS, you have to file a tax return for 2007 before you can get your rebate.

Would a return will all zeros count?

IR-2008-18 (2/13/2008)

IRS Will Send Stimulus Payments Automatically Starting in May;
Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate

WASHINGTON -- The Internal Revenue Service today advised taxpayers that in most cases they will not have to do anything extra this year to get the economic stimulus payments beginning in May.

"If you are eligible for a payment, all you have to do is file a 2007 tax return and the IRS will do the rest," said Acting IRS Commissioner Linda Stiff.

The IRS will use information on the 2007 tax return filed by the taxpayer to determine eligibility and calculate the amount of the stimulus payments.

The IRS will begin sending taxpayers their payments in early May after the current tax season concludes. Payments to more than 130 million taxpayers will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future.

Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

Most taxpayers just need to file a 2007 tax return as usual. No other action, extra form or call is necessary. The agency's Web site, http://www.irs.gov, will be the best information source for all updates and taxpayer questions.

In most cases, the payment will equal the amount of tax liability on the tax return, with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return).

The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans' disability compensation, pension or survivors' benefits received from the Department of Veterans Affairs in 2007.These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.

Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans' benefits and earned income, such as income from wages, salaries, tips and self-employment. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment.

Recipients of Social Security, certain Railroad Retirement and certain veterans' benefits should report their 2007 benefits on Line 14a of Form 1040A or Line 20a of Form 1040. Taxpayers who already have filed but failed to report these benefits can file an amended return by using Form 1040X. The IRS is working with the Social Security Administration and Department of Veterans Affairs to ensure that recipients are aware of this issue.

"Some people receiving Social Security and veterans' benefits may not realize they will need to file a tax return to get the stimulus payment," Stiff said. "To reach these people, the IRS and Treasury will work closely with the Department of Veterans Affairs, the Social Security Administration and key beneficiary groups on outreach efforts."

Eligible taxpayers who qualify for a payment will receive an additional $300 for each child who qualifies for the child tax credit.

Payments to higher income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly.

Taxpayers must have valid Social Security Numbers to qualify for the stimulus payment. If married filing jointly, both taxpayers must have a valid Social Security Number. And, children must have valid Social Security Numbers to be eligible as qualifying children.

Taxpayers who file their tax returns using an Individual Taxpayer Identification Number issued by the IRS or any number issued by the IRS are ineligible. Also ineligible are individuals who can be claimed as dependents on someone else's return, or taxpayers who file Form 1040-NR, 1040-PR or 1040-SS.

To accommodate taxpayers who file tax returns later in the year, the IRS will continue sending payments until December 31, 2008. The IRS also cautions taxpayers that if they file their 2007 tax return and then move their residence that they should file a change of address card with the U.S. Postal Service.

The IRS will mail two informational notices to taxpayers advising them of the stimulus payments. However, taxpayers should be alert for tax rebate scams such as telephone calls or emails claiming to be from the IRS and asking for sensitive financial information. The IRS will not call or email taxpayers about these payments nor will it ask for financial information. Scam emails and information about scam calls should be forwarded to phishing@irs.gov.

[.]

Would a return will all zeros count?

Probably. Even if such returns are flagged as probably frivolous, that implies that there is income that isn't being reported.

Even if the income and tax due that should have been reported is minimal, it would still entitle them to $300 per head.

In fact, many frivolous returns might result in a smaller rebate than they would have gotten if the return had been filed accurately in the first place, $300 versus $600 or $600 versus $1,200. Or, at the very least, an unnecessary delay in the payment or crediting of the full rebate amount until the actual tax due has been determined. Not to mention the possible litigation and prison time.

Those TPs are so smart. The ebil goobermint wants to give them money and they'll still find a way to screw it up.

[Quixote]

Would a return will all zeros count?

Probably. Even if such returns are flagged as probably frivolous, that implies that there is income that isn't being reported.

Even if the income and tax due that should have been reported is minimal, it would still entitle them to $300 per head.

In fact, many frivolous returns might result in a smaller rebate than they would have gotten if the return had been filed accurately in the first place, $300 versus $600 or $600 versus $1,200. Or, at the very least, an unnecessary delay in the payment or crediting of the full rebate amount until the actual tax due has been determined. Not to mention the possible litigation and prison time.

Those TPs are so smart. The ebil goobermint wants to give them money and they'll still find a way to screw it up.

The payments will be based on the 2007 returns. If a zero return is filed, then the stimulus payment will be $0, unless the taxpayer reported qualifying income on the return. The payments will be made until 12/31/2008. It is far from clear what happens if someone's eligibility for a payment is determined after that date. Most assessments on 2007 zero returns will be made later than 12/31/2008.

[grammarian44]

Apparently non-filers may still receive rebates, but only if they now file. The interesting question is not whether TPs who don't file (but who have sufficient taxable income to require filing) are eligible for rebates, but whether they will take the steps to file, including disclosure of amounts of income, etc. I would love to see an argument as to why a non-filer who is also a non-payer is entitled to a rebate. Whether a TP would qualify for the rebate would depend on the particular wacky theory with which the TP justifies his or her failure to file or pay.

2008 Economic Stimulus Payments: Filing Instructions for Certain Individuals Not Otherwise Required to File an Income Tax Return

Notice 2008-28

PURPOSE
This notice informs certain individuals not otherwise required to file an income tax return how to request the economic stimulus payment authorized by H.R. 5140, the Economic Stimulus Act of 2008.
BACKGROUND
The Economic Stimulus Act of 2008 (Act) amended § 6428 of the Internal Revenue Code (Code) to provide economic stimulus payments to eligible individuals. For this purpose, an eligible individual is any individual other than a nonresident alien, an estate or trust, or an individual who can be claimed as a dependent under § 151 of the Code for the taxable year. Section 6428(g) authorizes advance refunds and credits of the economic stimulus payments to be made in 2008.
In general, the amount of the 2008 economic stimulus payment is the lesser of: (1) the individual’s net income tax liability for 2007, or (2) $600 ($1,200 in the case of a joint return). However, as provided in § 6428(b), an individual (or married couple filing jointly) with at least $3,000 of “qualifying income” in 2007 may receive a minimum payment of $300 ($600 in the case of a joint return), even though the individual (or married couple) has no net income tax liability for 2007. Qualifying income for purposes of § 6428(b) means: (1) earned income includible in gross income for federal income tax purposes; (2) social security benefits (including monthly retirement, survivor and disability benefits, but not including supplemental security income (SSI) payments) and Tier 1 railroad retirement benefits described in § 86(d) of the Code; and (3) disability compensation, disability pension and survivor benefits from the Department of Veterans Affairs pursuant to Chapters 11, 13, or 15 of Title 38 of the United States Code.
In order to receive an economic stimulus payment in 2008, an eligible individual must file an income tax return for 2007. Most eligible individuals are required by § 6012(a) of the Code to file an income tax return because their gross income for 2007 exceeds the sum of their exemption amount plus the applicable standard deduction, or are required by § 6017 of the Code to file an income tax return with respect to self-employment tax on net earnings from self-employment of $400 or more. Additionally, some eligible individuals who are not required by § 6012(a) or § 6017 to file an income tax return nevertheless file to obtain refunds of withheld tax (e.g., tax withheld on wages under § 31 of the Code).
Eligibility for the 2008 economic stimulus payment, and the amount of that payment, is based on information reported on the taxpayer’s filed income tax return for 2007. See § 6428(g). Thus, individuals who are required by § 6012(a) or § 6017 to file an income tax return, or who file to obtain a refund of withheld tax, will not need to file any extra forms or call the Service to request the payment in 2008.
Many individuals with low earned income or other qualifying income (e.g., social security benefits, Tier 1 railroad retirement benefits, and certain disability or survivor benefits from the Department of Veterans Affairs) may not be required by § 6012(a) to file an income tax return and may not file an income tax return to receive a refund of withheld taxes. This notice informs these individuals of the minimum filing necessary to obtain the economic stimulus payment in 2008.
DISCUSSION
Section 6428(g)(1) of the Code treats an eligible individual as having made a payment in 2007 against the income tax in an amount equal to the amount of the economic stimulus payment. Thus, the amount of the 2008 economic stimulus payment is treated as an overpayment of tax for 2007 which, as provided in § 6428(g)(3), the Service is directed to refund or credit to the eligible individual.
Section 6402 of the Code and § 301.6402-3 of the Regulations on Procedure and Administration authorize taxpayers to seek a refund or credit of overpaid income tax by filing a properly executed individual income tax return. In the case of an eligible individual (or married couple filing jointly) who is not required by § 6012(a) or § 6017 to file an income tax return, but who had qualifying income in 2007 that equals or exceeds $3,000, the Service will treat a Form 1040A prepared in the following manner as a valid claim for refund in the amount of the 2008 economic stimulus payment:
1. In the blank space at the top of page 1 of Form 1040A, eligible individuals should write the words “Stimulus Payment” above the title of the form.
2. Eligible individuals should enter names, mailing address, and social security numbers on the appropriate lines of Form 1040A and should enter filing status and exemption information on lines 1 through 6d of the form.
3. Eligible individuals should enter wages and other compensation (including net earnings from self-employment) received in 2007 on line 7 of Form 1040A.
4. Eligible individuals should enter qualifying income received in 2007 in the form of social security benefits, Tier 1 railroad retirement benefits and certain veterans’ disability or survivor benefits on line 14a of Form 1040A. Individuals who do not have documentation of the exact amount of these government-provided benefits may estimate their annual benefit by multiplying their monthly benefit, prior to any deductions for withheld taxes or Medicare premiums, by the number of months during 2007 that they received the benefit.
5. Eligible individuals who are members of the Armed Forces of the United States should enter any nontaxable combat zone compensation received in 2007 that they elect to treat as earned income on line 40b of Form 1040A.
6. Eligible individuals who request direct deposit of their economic stimulus payment into their account at a bank or other financial institution should complete lines 44b through 44d of Form 1040A. Eligible individuals may not request a deposit of the stimulus payment into an account that is not in the eligible individual’s name.
7. Eligible individuals should sign and date the form under the penalties of perjury statement, and should enter the identifying information of any third party designee or paid preparer, if applicable, at the bottom of page 2 of Form 1040A.
Based on the information provided on Form 1040A, the Service will compute the amount of the stimulus payment that will be refunded or credited.

[Disilloosianed]

I already saw one LH'er the other day who posted that he was going to return his stamped "VOID".

Mind power, Swede.....