UPDATE 2-14-22
It may be the case that the “How To” handouts offered to large populations of prisoners filing tax returns in 2021 didn’t take into account the fact that many had yet to receive the 2020 EIP. For months I assumed I was waiting for the IRS to confirm my identity, but upon finally reaching a representative at the number listed on the 4883c letter, I learned that my identity was confirmed but I made a technical error: By marking 2021’s Line 30 with a zero, I was not indicating the payments I had received; I was indicating the total amount of 2020 EIPs that I was owed. I believe many others filled theirs out the same. Upon contacting the IRS I was asked to file an amended return for 2021, and list in Line 30 the amount of 2020’s EIP I am owed. I’ll update again as soon as I have new info.
[The following transcription came courtesy of Critical Resistance.]
This fact sheet contains legal information and not legal or tax advice. Laws and policies change. Please seek advice on your specific situation. This sheet is adapted from Root & Rebound Reentry Advocates in San Francisco. We are not tax experts.
IMPORTANT: If You Did Not Receive Economic Impact Payments (Stimulus Payments), you should act by May 17, 2021.
What are Economic Impact Payments (EIP)?
EIP are money from the government aimed at helping people and the economy due to COVID-19. They are also called “stimulus checks” or “stimulus payments.” There have been two sets of payments so far: EIP1 in 2020 and EIP2 in 2021.
What is the Recovery Rebate Credit (RRC)?
The RRC is a credit you can request on a 2020 1040 tax form to get the money you qualified for but did not receive for EIP1 and EIP2.
Who is eligible for the Recover Rebate Credit (RRC)?
You are eligible to get the RRC if you satisfy all of the following requirements:
–You were a U.S. Citizen or Legal Permanent Resident in 2020, and
–You have a valid Social Security Number, and
–You are not claimed as a dependent on another person’s 2020 tax return, and
–The IRS did not already send you the full amount you are entitled for both Economic Impact Payments
***Incarcerated people can qualify for RRC and you do not need a job or earnings above a certain amount.
Note: If part or all of your payment was taken by [your Department of Corrections] or the IRS because of restitution or outstanding child support, you cannot ask for that money back with the RRC.
How do I get the Recovery Rebate Credit?
If you qualify, you must file a 2020 tax form to the IRS and request a RRC on line 30 of the form. Your mail must be postmarked by May 17, 2021 unless you get an extension. This is the process even if you would not otherwise need to file taxes. A sample form and instructions from the IRS is [attached]. This sample applies only to people with an income in 2020 below $12,400 and who are filing the form individually. If your income was higher or you are filing jointly with a spouse, you will need to follow the general IRS instructions or get help from a tax professional. You possibly could get help from a Volunteer Income Tax Assistance program (1-800-906-9887).
If I am eligible, how much money do I get?
The RRC is for the amount of money you should have received for EIP1 plus EIP2 (but now based on your 2020 income), minus any payment you did receive (EIP1 + EIP2 – payments received). A worksheet from the IRS for figuring out the amount you should get is [attached]. Individual Filers: If you had an income under $75,000, EIP1 is for $1,200, plus $500 per qualifying child. EIP2 is for $600, plus $600 per qualifying child. If your income was higher, you may qualify for EIP1 and EIP2, but for less money. Joint Filers: If you had a joint income under $150,000, EIP1 is for $2,400, plus $500 per qualifying child. EIP2 is for $1,200, plus $600 per qualifying child. If your income was higher, you may still qualify for EIP1 and EIP2, but for less money. (Note: Your payments also will be lower if your spouse does not have a Social Security Number, unless one of you served in the Armed Forces in 2020.)
I was eligible for the EIP1, but the IRS did not send me the payment. What can I do?
The IRS did not process all of the claims they received in 2020, even those sent on time. Although it is unfair, according to the IRS, you will need to file a 2020 tax form and request the RRC on line 30 of the form to get the payment(s) you are eligible for that they did not already send you. Please see “How do I get Recovery Rebate Credit?” above.
The IRS sent a debit card for my EIP2, which correctional officers will not give to me. How can I get my money?
The IRS made this mistake for many people. Even so, it is requiring people in this situation to file a 2020 1040 tax form and request the RRC to get the EIP2. Please see “How do I get these payments?” above.
I received EIP1, but after that I moved. I did not receive EIP2. What can I do?
According to the IRS, you should not file a change of address form because the IRS will not send a new check due to a change of address. Instead, you can get the second payment by filing a 2020 1040 tax form and requesting the RRC–if EIP2, sent to the wrong address, was returned to the IRS. Please see “How do I get the Recovery Rebate Credit?” above. If the IRS sent to the wrong address but it was not returned, you can file a Payment Trace (Form 3911) with the IRS, in addition to the 2020 1040 tax form requesting the RRC. A Payment Trace is meant to lead the IRS to investigate what happened to payments not returned to the IRS.
Some or all of my Economic Impact Payment(s) were collected to pay child support, restitution, or other debts. Was that right?
For EIP1, the IRS was allowed to take out child support, and jails and prisons were allowed to take out restitution or other debts. EIP2 generally should not have had child support, restitution, or other debts taken out. It is not yet certain whether debts can be taken out of the RRC.
I received a letter from the IRS asking me to verify my identity. What should I do?
The IRS sent a letter to some people, stating that they must verify their identity to get stimulus payments by calling a phone number and providing detailed information, both of which often cannot be done from jails or prisons. As of now, there is sadly no clear solution. If you cannot make the call, you could try to prove your identity by mail with a letter:
— explaining why you cannot verify your identity over the phone, and
— asking the IRS to accept the enclosed information or contact your institution to verify your identity, and enclosing copies of everything that helps support you are who you say you are, such as (if possible):
*all forms of ID, including a letter from a correctional officer certifying/confirming your identity; the 2019 EIP1 from you sent the IRS and a copy of an old tax return; previous addresses the IRS may have had for you. Also, loved ones on the outside could try asking a low income tax clinic for help (1-877-777-4778).
I am incarcerated and I received a notice from the IRS saying that the payment was sent to me, but I never received it. What can I do?
If the prison returned it to the IRS, then you can send the IRS a 2020 1040 tax form requesting the RRC. Please see “How do I get these payments?” above. If you believe your jail/prison has your money, you can file a request (if in CDCR, a form 22) or go through the grievance process (if in CDCR, a form 602). Attach a copy of any proof you have. You can also file a Payment Trace (Form 3911) with the IRS to investigate what happened to payments not returned to the IRS. To meet the May 17, 2021 deadline, you can file the 2020 1040 form before a payment trace is complete.
I received a letter from the IRS saying my second stimulus payment was taken to pay for 2007 taxes. Was that right?
According to the IRS, if you received a letter saying that your second stimulus payment was collected (“offset”) to pay for 2007 taxes, it was a mistake. The money was not collected for 2007 taxes. If eligible, to get your payment, file a 2020 1040 tax form and request the RRC. Please see “How do I get these payments?” above.
Can my loved one file the tax return for me?
The IRS generally has not given permission for loved ones on the outside to file a tax return for an incarcerated person. Contact the IRS or a tax professional for information specific to you and for questions about power of attorney.
We are sure that you and your friends will have questions. If you can, ask a loved one to contact the IRS at 1-800-919-9835 (general information about RRC) or 1-800-829-1040 (taxpayer help line). Critical Resistance cannot advise you on how to fill out tax forms or check the status of your RRC.
Please help others: If you are allowed, please post this information and share extra forms, so as many people as possible can get the EIP they are entitled to.
Remember, we are not tax experts, and have limited capacity to respond to inquiries. Thank you!
If you do reply, address:
c/o Stimulus Check
Critical Resistance
1904 Franklin St., Ste. 504
Oakland, CA 94612
Critical Resistance does not have members that are tax experts. We have mobilized to send these forms and instructions to prisoners because we believe that prisoners deserve to have their material needs met, and most principally, deserve freedom. We wish you luck in getting your EIP!
[The following was added to this post 3-29-21]
Example form 1040: Form 1040 example
IRS letter requesting identity verification (transcribed below): IRS Identiity verification letter
Dear Taxpayer,
We received an income tax return, Form 1040, for the tax year above using your name an Social Security Number (SSN) or individual taxpayer identification number (ITIN). To protect you from possible identity theft, we need to verify your identity before we process the income tax return, issue a refund or credit any overpayments to your account.
WHAT YOU NEED TO DO IMMEDIATELY
Call us at 800-830-5084 between the hours of 7:00 a.m. to 7:00 p.m., local time within 30 days of this letter. If you filed an income tax return, have the documents listed below. When you call, we’ll ask questions to verify your identity.
To expedite the process when you call, you MUST have all of the following:
— This letter
— The income tax return for the year shown above (Form 1040, 1040A, 1040-EZ, 1040-PR, 1040-NR, 1040-SR, etc.).
— A prior year income tax return.
— Any supporting documents for each year’s income tax return, (Forms W-2 or 1099, Schedules C and F, etc.) that you filed with your income tax return.
If we can’t verify your identity over the phone, we will ask you to schedule an appointment at your local IRS office to verify in person.
IF you choose to authorize someone to represent you before the IRS, complete form 2848, Power of Attorney and Declaration of Representative. We encourage you to be available with your representative on the call. If you choose to have someone else assist you on the call, you must call us together and you must participate on the call. For more information about Form 2848, visit our website at www.irs.gov/forms-pubs or call 800-829-1040.
After you’ve successfully verified your identity it may take up to 9 weeks to receive your refund. If there are other issues, you may receive a notice requesting additional information, which will extend the dat by which you’ll receive your refund or receive a credit of any overpayment to your account.
WHERE YOU CAN GO FOR ADDITIONAL INFORMATION
Visit www.irs.gov/individuals/understanding-your-letter-4883c-or-6330c for more information about this letter.
Visit www.irs.gov/identity-theft-central for more information about identity theft
The Taxpayer Adocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. TAS can offer you help if your tax problem is causing financial difficulty, you’ve tied but been unable to resolve your problem with the IRS, or you believe an IRS system, process, or procedure isn’t working as it should. If you qualify for TAS assistance, which is always free, TAS will do everything possible to help you. To learn more, visit www.taxpayeradvocate.irs.gov or call 877-777-4778.
Tax professionals who are independent from the IRS may be able to help you.
Low Income Tax Payer Clinics (LITSs) can represent low-income persons before the IRS or in court. LITCs can also help persons who speak English as a second language. Any services provided by an LITC must be free or [provided] for a small fee. To find an LITC near you:
— Go to www.taxpayeradvocate.irs.gov/litcmap;
— Download IRS Publication 4134, Low Income Taxpayer Clinic List, available at www.irs.gov/forms-pubs; or
— Call the IRS toll-free at 800-829-3676 and ask for a copy of Publication 4134.
State bar associations, state or or local societies of accountants or enrolled agents, or other nonprofit tax professional organizations may also be able to provide referrals.
UPDATE
8-4-21
After filing the Central Authorization Form (CAF) to give a family member the power to represent me, my representative was instucted over the phone, per the IRS internal policy for Taxpayer protection program basis authentication procedures 25.25.6.3, to have me write a written request to complete the identify verification and include the following:
A copy of the 4883C letter
Name
Date of Birth
SSN
Inmate ID (and location, presumably)
Send to:
Internal Revenue Service
3651 IH35
Stop 6579AUSC
Austin, TX 73301
Though this information conflicts with the instructions given in the 4883C letter I was sent to verify my identity, I suspect it wouldn’t hurt to take this step in addition to those recommended in the 4883C letter.