RECOMMENDATION 2502
RECOMMENDATION TEXT:
Sub paragraph a, b and c. should be indented to show that they relate to paragraph 3. Clarity
IRS Action: Adopted
The instructions will be updated with TAPs recommendation by 12/31/2023.
RECOMMENDATION 2503
RECOMMENDATION TEXT:
Omit this section as statute of limitations is closed for 2018 & 2019 tax years. Unnecessary information – instructions are already too lengthy.
IRS Action: Not adopted
This article remains useful for the 2023 revision because taxpayers wanting to amend their 2019 returns have until 2023 to submit that year’s amended return. Rebuttal: The Statute is now closed since taxpayers are beyond the October 15, 2023, tax filing deadline.
RECOMMENDATION 2504
RECOMMENDATION TEXT:
Form 8615 must be filed for any child who meets all “5” of the following conditions. Clarity. On the 2022 instructions part of the conditions wrap to the top of the 2nd column. This will alert the taxpayer to continue reading.
IRS Action: Not adopted
The suggested text provides no significant added value in describing the conditions. Rebuttal: The value add is that the taxpayer becomes aware that there are 5 conditions that must be met. The taxpayer may miss it since several of the conditions are in a different column. This will resolve ID 2506 also.
RECOMMENDATION 2505
RECOMMENDATION TEXT:
The word “all” should be bolded, underlined, or alternatively, the sentence should be changed to state “all five” of the following conditions. Improve readability and ensure that reader recognizes there are 5 conditions to consider
IRS Action: Not adopted
We refrain from excessive bolding as it is inconsistent with plain writing and can be more distracting than helpful.
RECOMMENDATION 2506
RECOMMENDATION TEXT:
It would be helpful to format this page to make sure that all 5 requirements are listed together in the same column to make sure the reader sees the entire list. Clarity. On the 2022 instructions part of the conditions wrap to the top of the 2nd column. This will alert the taxpayer to continue reading.
IRS Action: Not adopted
Arbortext Editor does not give us the ability to format that list together in the same column unless the text naturally lands in that column.
RECOMMENDATION 2507
RECOMMENDATION TEXT:
Parent electing to report child’s certain types of unearned income-Which Parent’s return to Use. Add clarity to when this section applies. It isn’t until you read the first sentence that you know when it applies.
IRS Action: Adopted
We are removing this material from the 12/2024 revision of the instructions. This material does support the topics discussed in this section. Rebuttal: We aren’t clear on the adopt in principle to remove the material when the recommendation was to add clarity for “Which Parent’s Return to use”.
RECOMMENDATION 2508
RECOMMENDATION TEXT:
If a child’s parents are married to each other and file a joint return, use the joint return when electing to report the child’s interest, dividends, and capital gain distributions on their return. Language is consistent with the TIP. It reinforces capital gain distributions are allowed to be included on the parent’s return.
IRS Action: Adopted
We are removing this material from the 12/2024 revision of the instructions. This material does support the topics discussed in this section. Rebuttal: We aren’t clear on the adopt in principle to remove the material when the recommendation was to add clarifying language about what types of income could be reported on the parent’s return.
RECOMMENDATION 2509
RECOMMENDATION TEXT:
Parent’s or other sibling’s return information unavailable. A child may have siblings whose information is needed to complete Form 8615. Expanding the section provides guidance to the taxpayer on how to comply with the tax laws.
IRS Action: Adopted
We can adopt this suggestion in the next revision (12/2024) adding text about completing the form based on the use of estimates.
RECOMMENDATION 2510
RECOMMENDATION TEXT:
Move this section including how to request before parent with different tax year to following the heading Incomplete Information for filing. The flow is better.
IRS Action: Adopted
Adopt in next revision (12/2024). The text move improves the flow of the text where the information that follows the title, Incomplete Information for Filing, is more in line with the title.
RECOMMENDATION 2511
RECOMMENDATION TEXT:
Parent’s return information not known timely. If the information needed from the parent’s return isn’t known by the time the child’s return is due (usually April 15, October 15 if an extension of time has been filed), you can file the return using estimates. You can use any reasonable estimate. This includes using information from last year’s return. If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. When you get the correct information, file an amended return on Form 1040-X, Amended U.S. Individual Income Tax Return. This recommendation will provide the taxpayer will guidance on what to do if the IRS doesn’t provide the parents’ or other siblings tax return information by the extended due date of the return. IRS processing time may not allow for receiving the required information by the due date of the return.
IRS Action: Adopted
Add material to the section, “Parent’s return information unavailable,” describing how to file the form using estimates. This material will meet the suggestion requirement.
RECOMMENDATION 2512
RECOMMENDATION TEXT:
If the parents were married but filed separate returns, enter the name and SSN of the parent who had the higher taxable income. If you don’t know which parent had the higher taxable income, see Parents Who Don’t File a Joint Return, earlier. Makes the language consistent with the recommendation above.
IRS Action: Adopted
This change provides a more direct path to the information for the reader.
RECOMMENDATION 2513
RECOMMENDATION TEXT:
See Parents are divorced for definition of custodial parent. Refers the taxpayer to the section of the instructions that defines custodial parent rather than referring to a Publication.
IRS Action: Not adopted
The description of the custodial parent is fully explored in Pub. 501 whereas the description of a custodial parent in the section “Parents are divorced,” is not adequate for purposes of the section, Lines A – C. Rebuttal: If the instructions are not adequate to complete Lines A-C, sufficient information should be provided within the instructions to allow the taxpayer to be able to complete the form without having to refer to another IRS publication. The recommendation is to include enough of the information from Publication 501 in the instructions for Form 8615 so taxpayers can properly complete Lines A-C without referring the taxpayer to another publication.
RECOMMENDATION 2514
RECOMMENDATION TEXT:
If the child had earned income, use the Child’s Unearned Income Worksheet, Page 3, Column 1 below, to figure the amount to enter on line 1. Clarity. Referring the taxpayer to the specific page.
IRS Action: Not adopted
Including page and column number locators has historically increased the possibility of having errors in future revisions of the instructions.
RECOMMENDATION 2515
RECOMMENDATION TEXT:
Nontaxable income. For this purpose, unearned income includes only amounts your child must include in gross income. Nontaxable unearned income, such as tax-exempt interest, nontaxable scholarships and fellowships and the nontaxable part of social security and pension payments, isn’t included in gross income. Clarifies when a scholarship and a fellowship would not be treated as unearned income.
IRS Action: Not adopted
The current text adequately illustrates the concept of nontaxable income and includes examples in the sentence that follows in that section.
Rebuttal: Scholarships used for nonqualifying expenses are taxable and treated as unearned income. Including the language will highlight for the taxpayer that only nontaxable scholarships and fellowships are not treated as unearned income.
RECOMMENDATION 2516
RECOMMENDATION TEXT:
These sentences should be bolded. A caution symbol would also be helpful. Improve likelihood that taxpayers won’t inadvertently omit this form because the computation is not applicable based on mathematical computations in Part I of Form 8615.
IRS Action: Not adopted
We refrain from excessive bolding as it is inconsistent with plain writing and can be more distracting than helpful.
RECOMMENDATION 2517
RECOMMENDATION TEXT:
Enter on line 6 the amount from the parent’s (as identified from Line A of Form 8615) Form 1040, 1040-SR, or 1040-NR, line 15, even if your spouse isn’t the child’s parent. Specifies that information from the correct parent should be used in completing the form.
IRS Action: Not adopted
The suggested text provides no significant added value in describing the conditions.
RECOMMENDATION 2518
RECOMMENDATION TEXT:
Recommend including Figure 2. Does Your Child Have To Use Form 8615 To Figure Their Tax? This was a flow chart found on Page 14 of Publication 929 that was not brought into the Instruction Form 8615. Adding this flowchart to Inst Form 8615 “Who Must File will enhance taxpayer clarity and understanding related to filing form 8615.
IRS Action: Not adopted
Adding this graphic to the instructions would increase the size of the instructions but not add value when the information needed to make this decision is adequately described in the text in these instructions. Rebuttal: Some taxpayers may understand the information more easily if it is in the form of a flow chart. Some taxpayers may be visual learners who benefit from seeing the information in a diagram/flow chart format.