SECTION 4. SPECIAL — Internal Revenue Bulletin 2021-29

FOR FILING SIMPLIFIED PAPER OR ELECTRONIC TAX RETURN IF INDIVIDUAL IS NOT REQUIRED TO FILE A FEDERAL INCOME TAX RETURN FOR TAXABLE YEAR 2020

.01 Federal Income Tax Return Filed by Mail or Electronically . Under the sim

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plified procedure set forth in this section 4, a simplified return may be filed, on paper or electronically, on a Form 1040, U.S. Individual Income Tax Return, Form 1040-SR, U.S. Tax Return for Seniors, or Form 1040-NR, U.S. Nonresident Alien Income Tax Return . A Federal income tax return for taxable year 2020 filed under the simplified procedure in this section 4 will result in the following:

(1) The Secretary will use the information provided on the simplified return to (i) estimate the annual advance amount for the simplified return filer, and (ii) calculate the third-round economic impact payment for which the simplified return filer is eligible. As noted in section 2.05(1) (a) of this revenue procedure, a nonresident alien is not eligible under § 6428B(c) to receive third-round economic impact payments.

(2) The simplified return filer may claim the 2020 recovery rebate credit and additional 2020 recovery rebate credit when filing Form 1040 or Form 1040SR. As noted in sections 2.03(1)(a) and 2.04(1)(a) of this revenue procedure, a nonresident alien is not eligible under §§ 6428(d) and 6428A(d) to claim the 2020 recovery rebate credit or additional 2020 recovery rebate credit.

.02 Definition of Simplified Return Fil- er . For purposes of this section 4, a “simplified return filer” is an individual (1) who is not required to file a Federal income tax return for taxable year 2020, (2) whose gross income for that taxable year is less than their applicable standard deduction amount, and (3) who has not filed a paper or electronic Federal income tax return for that taxable year. A simplified return filer, however, does not include a resident of a U.S. territory.

.03 Simplified Filing Method . (1) Overview . In the case of a simplified return filer, the IRS will process the simplified return filer’s Form 1040, Form 1040-SR, or Form 1040-NR for taxable year 2020 to calculate the Federal income tax benefits described in section 3.01 of this revenue procedure if the form is prepared in the manner required by this section 4.03. The Form 1040, Form 1040-SR, or Form 1040-NR must include the information described in this section 4.03.

(2) Write Rev. Proc. 2021-24 on form . A simplified return filer who files the Federal income tax return by mail must indicate “Rev. Proc. 2021-24” above the printed material at the top of page 1 of the Form 1040, Form 1040-SR, or Form 1040-NR. (3) Filing status . A simplified return filer must select their filing status for taxable year 2020 at the top of Form 1040, Form 1040‑SR, or Form 1040-NR. (4) Required general information . (a) In general. A simplified return filer must enter their name, mailing address, and SSN or IRS individual taxpayer identification number (ITIN), and the name and SSN or ITIN of their spouse if filing a joint return, on the appropriate lines of Form 1040, Form 1040-SR, or Form 1040-NR. (b) Special rules for certain nonres- ident or resident alien simplified return filers. A nonresident or resident alien simplified return filer who does not have and is not eligible to receive an SSN and does not have an ITIN must attach Form W-7, Application for IRS Individual Tax- payer Identification Number, to Form 1040, Form 1040-SR, or Form 1040-NR to apply for an ITIN. Such nonresident alien simplified return filer is not eligible for the 2020 recovery rebate credit, additional 2020 recovery rebate credit, or third-round economic impact payments. Unless filing a joint return with someone who has an SSN, such resident alien simplified return filer is not eligible for the 2020 recovery rebate credit or additional 2020 recovery rebate credit. Unless a return includes a dependent who has an SSN or an ATIN or is filed jointly with someone who has an SSN, such resident alien simplified return filer is not eligible for third-round economic impact payments.

(5) Individuals who could be claimed as dependents by other individuals . A simplified return filer must check all applicable boxes in the area immediately below the virtual currency line for each individual who could be claimed as a dependent by any other individual for taxable year 2020.

(6) General information regarding de- pendents .

(a) In general. A simplified return filer should provide information on the appro

priate lines of Form 1040, Form 1040‑SR, or Form 1040-NR regarding each dependent at the end of taxable year 2020 who has an SSN or an ATIN. For each dependent, a simplified return filer must provide the name, SSN or ATIN, and relationship to the individual.

(b) Qualifying children. A simplified return filer should check the child tax credit box in Column (4) for each dependent who has an SSN that is valid for employment and is a 2020 CTC qualifying child of the simplified return filer for taxable year 2020.

(7) Limited information to provide in lines 1 through 38 . A simplified return filer must leave blank lines 1 through 38 of Form 1040 or Form 1040-SR, even if the values for these lines are in fact not zero, except as provided in this section 4.03(7):

(a) Lines 2b, 9, and 11 . A simplified return filer who files their Federal income tax return electronically must enter $1 on lines 2b, 9, and 11.

(b) Line 12 . A simplified return filer must enter the applicable standard deduction amount, if any, for their filing status on line 12. Form 1040-NR filers who file their Federal income tax return electronically must enter $1 on lines 7 and 8 of Schedule A (Form 1040-NR) and line 12 of Form 1040-NR.

(d) Lines 30, 32, 33, 34, and 35a (2020 recovery rebate credit entries) . A simplified return filer who files Form 1040 or Form 1040-SR may enter the sum of the filer’s 2020 recovery rebate credit and additional 2020 recovery rebate credit on lines 30, 32, 33, 34, and 35a. The credit amounts should be computed using the Recovery Rebate Credit Worksheet for line 30 in the 2020 Instructions for Form 1040 and 1040-SR, available at www.irs.gov/Form1040. Providing the correct amount will speed up the payment of the 2020 recovery rebate credit and additional 2020 recovery rebate credit, as well as the third-round economic impact payment. The IRS will correct any incorrect amount (other than $0) claimed on lines line 30, 32, 33, 34, or 35a, but the correction will delay processing of the return and therefore enrollment for advance child tax credit payments.

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Federal income tax return for that taxable year. A zero AGI filer, however, does not include a resident of a U.S. territory.

.03 Required Information . In addition to all other information required to be entered on Form 1040, Form 1040-SR, or Form 1040-NR, a zero AGI filer must enter the following:

(1) $1 as taxable interest on line 2b of the form;

(2) $1 as total income on line 9 of the form;

(3) $1 as AGI on line 11 of the form; and

(4) $1 as itemized deductions on lines 7 and 8 of Schedule A (Form 1040-NR) and line 12 of Form 1040-NR (Form 1040-NR filers only).

.04 Signature. A zero AGI filer must sign the return under penalties of perjury including the filer’s IP PIN, if applicable, as part of the filer’s signature. In addition, a zero AGI filer may enter the identifying information of any third-party designee, if applicable, at the bottom of page 2 of Form 1040, Form 1040-SR, or Form 1040-NR. A zero AGI filer who has been assigned an IP PIN, but has misplaced it, may retrieve the IP PIN at https://www.irs.gov/identitytheft-fraud-scams/retrieve-your-ip-pin.

.05 Accuracy of Return . Individuals who report incorrect information regarding qualifying children or other dependents or otherwise provide incorrect information on their returns may be liable for civil or criminal penalties. However, the IRS will not challenge the accuracy of the items of income reported by zero AGI filers on their returns in accordance with this section 5.