SECTION 6. SPECIAL — Internal Revenue Bulletin 2022-7

FOR EIC/CTC/RRC FILERS

.01 Federal Income Tax Return Filed on Paper or Electronically . Under the simplified procedure set forth in this section 6, a simplified return may be filed, on paper or electronically, on a Form 1040 or Form 1040-SR. A Federal income tax return for taxable year 2021 filed under the simplified procedure in this section 6 will result in the following:

(1) The EIC/CTC/RRC filer may claim the earned income credit for taxable year 2021. (2) The EIC/CTC/RRC filer may claim the child tax credit for taxable year 2021.

(3) The EIC/CTC/RRC filer may claim the 2021 recovery rebate credit for taxable year 2021.

.02 Definition of EIC/CTC/RRC Filer . For purposes of this section 6, an “EIC/ CTC/RRC filer” is an individual- (1) Who is not required to file a Federal income tax return for taxable year 2021;

(2) Who has gross income for taxable year 2021 that is less than their applicable standard deduction amount;

(3) Who has earned income (as defined in § 32(c)(2)) for taxable year 2021, and has- (a) no income other than such earned income required to be reported on line 1 of the Form 1040 or Form 1040-SR (Form W-2 earned income), or

(b) income in addition to Form W-2 earned income, but has gross income for taxable year 2021 that is less than their applicable earned income credit “threshold phaseout amount” (as provided in section 2.04(2)(b)(iii) of this revenue procedure); (4) Who does not have an aggregate amount of disqualified income (as defined in § 32(i)(2)) in excess of $10,000;

(5) Who has not already filed a paper or electronic Federal income tax return for taxable year 2021;

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(6) Who has an SSN that is valid for the earned income credit, as described in section 2.04(3) of this revenue procedure;

(7) Who is a United States citizen or resident alien (or is treated as a United States resident alien in accordance with an election under § 6013(g) or (h));

(8) Who-(a) has a principal place of abode in the United States (determined as provided in § 32) for more than one-half of taxable year 2021, or

(b) files a joint return with an individual who satisfies the requirement described in section 6.02(8)(a) of this revenue procedure; and

(9) Who is not a resident of a U.S. territory.

.03 Simplified Filing Method . (1) Overview . In the case of an EIC/ CTC/RRC filer, the IRS will process the filer’s Form 1040 or Form 1040-SR for taxable year 2021 to calculate the Federal income tax benefits described in section 6.01 of this revenue procedure if the form is prepared in the manner required by this section 6.03. The Form 1040 or Form 1040-SR must include the information described in this section 6.03.

(2) Write Rev. Proc. 2022-12 on form . An EIC/CTC/RRC filer who files the Form 1040 or Form 1040-SR on paper must indicate “Rev. Proc. 2022-12” above the printed material at the top of page 1.

(3) Required general information . (a) Filing status . An EIC/CTC/RRC filer must select their filing status for taxable year 2021 at the top of Form 1040 or Form 1040-SR. (b) Personal information . An EIC/ CTC/RRC filer must enter their name, mailing address, and SSN, and the name and SSN of their spouse if filing a joint return, on the appropriate lines of Form 1040 or Form 1040-SR. (4) Individuals who could be claimed as dependents by other individuals . An EIC/CTC/RRC filer must check the applicable boxes in the top line of the “Standard Deduction” section of the Form 1040 or Form 1040-SR for each individual who can be claimed as a dependent by any other individual for taxable year 2021.

(5) General information regarding de- pendents .

(a) In general . An EIC/CTC/RRC filer should complete the appropriate lines in

the “Dependents” section of Form 1040 or Form 1040-SR regarding each dependent for taxable year 2021 who has an SSN, ITIN, or an ATIN. For each individual claimed as a dependent, an EIC/CTC/ RRC filer must provide the name, SSN, ITIN, or ATIN, and relationship to the individual.

(b) CTC qualifying children . An EIC/ CTC/RRC filer should check the child tax credit box in Column (4) for each dependent who is a CTC qualifying child for taxable year 2021 who has an SSN that is valid for employment.

(6) Limited information to provide in lines 1 through 38 . An EIC/CTC/RRC filer must complete lines 1 through 38 of Form 1040 or Form 1040-SR in accordance with this section 6.03(6). In each instance in which this section 6.03(6) requires the EIC/CTC/RRC filer to leave a line blank on Form 1040 or Form 1040SR, such line must be left blank even if the value for such line is in fact not zero.

(a) Line 1 (wages, salaries, tips, etc.) . An EIC/CTC/RRC filer must enter the total of the filer’s total Form W-2 earned income for taxable year 2021.

(b) Lines 2 through 8 . An EIC/CTC/ RRC filer must leave lines 2a through 8 blank.

(d) Line 10 . An EIC/CTC/RRC filer must leave line 10 blank.

(e) Line 11 (adjusted gross income) . An EIC/CTC/RRC filer must enter the amount provided on line 1.

(f) Line 12 (standard deduction or itemized deductions) . An EIC/CTC/RRC filer must enter the applicable standard deduction amount for their filing status on line 12a (standard deduction or itemized deductions) and line 12c (sum of lines 12a and 12b). The filer must leave line 12b blank.

(g) Line 13 . An EIC/CTC/RRC filer must leave line 13 blank.

(h) Line 14 (sum of lines 12c and 13) . An EIC/CTC/RRC filer must enter the amount entered on line 12c.

(i) Line 15 (taxable income) . An EIC/ CTC/RRC filer must enter $0.

(j) Lines 16 through 24 . An EIC/CTC/ RRC filer must leave lines 16 through 24 blank.

(k) Line 25 (federal tax withheld) . An EIC/CTC/RRC filer may—but is not required to— enter the total of the amounts shown as Federal income tax withheld on each Form W-2 of the EIC/CTC/RRC filer on lines 25a and 25d. If the EIC/CTC/ RRC filer does not enter the total amounts withheld, the filer must leave lines 25a and 25d blank. The EIC/CTC/RRC filer must leave lines 25b and 25c blank.

(l) Line 26 . An EIC/CTC/RRC filer must leave line 26 blank.

(m) Line 27 (2021 earned income cred- it entries) .

(i) Line 27a (2021 earned income cred- it entry) . An EIC/CTC/RRC filer may enter the amount of the filer’s earned income credit for taxable year 2021 on line 27a. A filer claiming the earned income credit who has one or more EIC qualifying children must complete and attach Schedule EIC, available at https://www.irs.gov/ ScheduleEIC. A filer who was born after January 1, 1998, and before January 2, 2004, must check the box on line 27a if the filer satisfies all the additional requirements for taxpayers who are at least age 18 to claim the earned income credit. The credit amount should be computed using the earned income credit instructions for line 27a in the 2021 Instructions for Form 1040 and 1040-SR, available at https:// www.irs.gov/Form1040.

(ii) Line 27b (nontaxable combat pay election) . An EIC/CTC/RRC filer must enter all of the filer’s nontaxable combat pay if the filer elects to include that pay in the filer’s earned income for purposes of the earned income credit.

(iii) Line 27c (prior year (2019) earned income) . An EIC/CTC/RRC filer must leave line 27c blank because an EIT/ CTC/RRC filer may not elect to use 2019 earned income to figure the 2021 earned income credit.

(n) Line 28 (2021 child tax credit en- try) . An EIC/CTC/RRC filer may enter the amount of the filer’s child tax credit for taxable year 2021 on line 28. The credit amount may be computed using Schedule 8812 (Form 1040), available at https://www.irs.gov/Schedule8812, and information from the filer’s Letter 6419 or the filer’s IRS online account at https://www.irs.gov/account. The EIC/ CTC/RRC filer claiming the child tax credit must attach the Schedule 8812 to

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the filer’s Form 1040 or Form 1040-SR. Providing the correct amount of the filer’s child tax credit for taxable year 2021 will allow for faster processing of the return and issuance of any tax refund. The IRS will correct any incorrect amount claimed on line 28, but the correction will delay processing of the return and the issuance of any tax refund.

(o) Line 29 . An EIC/CTC/RRC filer must leave line 29 blank.

(p) Line 30 (2021 recovery rebate cred- it entry) . An EIC/CTC/RRC filer may enter the amount of the filer’s 2021 recovery rebate credit on line 30. The credit amount may be computed using the Recovery Rebate Credit Worksheet for line 30 in the 2021 Instructions for Form 1040 and 1040-SR, available at https://www.irs. gov/Form1040, and information from the filer’s Letter 6475 or the filer’s IRS online account at https://www.irs.gov/account. Providing the correct amount of the filer’s 2021 recovery rebate credit will allow for faster processing of the return and issuance of any tax refund. The IRS will correct any incorrect amount (other than $0) claimed on line 30, but the correction will delay processing of the return.

(q) Line 31 . An EIC/CTC/RRC filer must leave line 31 blank.

(r) Line 32 (total other payments and refundable credits) . An EIC/CTC/RRC filer must enter the sum of lines 27a, 28, and 30 on line 32.

(s) Lines 33 through 35a . An EIC/CTC/ RRC filer must enter the sum of lines 25d and 32 on lines 33 through 35a.

(t) Line 35a checkbox (split direct de- posit indicator) . An EIC/CTC/RRC filer may not check the box on line 35.

(u) Lines 35b through 35d (direct de- posit information) . An EIC/CTC/RRC filer may request the direct deposit of their taxable year 2021 tax refund into an account at a bank or other financial institution by entering the information on lines 35b through 35d. The EIC/CTC/RRC filer must not request their taxable year 2021 tax refund be deposited into an account that is not in the name of that filer (for example, an EIC/CTC/RRC filer must not

request a direct deposit of their taxable year 2021 tax refund into their tax return preparer’s account).

(v) Lines 36 through 38 . An EIC/CTC/ RRC filer must leave lines 36 through 38 blank.

.04 Signature . An EIC/CTC/RRC filer must sign the return under penalties of perjury, including the filer’s identity protection personal identification number (that is, the filer’s IP PIN), if applicable, as part of the filer’s signature. In addition, the EIC/CTC/RRC filer may enter the identifying information of any third-party designee, if applicable, at the bottom of page 2 of Form 1040 or Form 1040-SR. An EIC/CTC/RRC filer who has been assigned an IP PIN, but has misplaced it, may retrieve the IP PIN at https://www.irs. gov/identity-theft-fraud-scams/retrieveyour-ip-pin.

.05 Simplified Return Is a Federal In- come Tax Return . A simplified return completed in accordance with the procedure described in section 6.03 of this revenue procedure is a taxable year 2021 Federal income tax return for all purposes, whether filed on paper or electronically.

.06 Assembly of Simplified Return . An EIC/CTC/RRC filer must attach all Forms W-2 to the filer’s Form 1040 or Form 1040-SR (for a paper return) or input all the information listed on each Form W-2 in the appropriate manner (for an electronically filed return). If the EIC/ CTC/RRC filer received a Form W-2c (a corrected Form W-2), the filer must attach all original Forms W-2 and any Forms W-2c.

.07 Accuracy of Return . Individuals who report incorrect information regarding qualifying children or other dependents or otherwise provide incorrect information on simplified returns may be liable for civil or criminal penalties. However, the IRS will not challenge the omission of the items of income on a simplified return that an individual files in accordance with this section 6 if the individual is eligible to use the procedure in this section 6 and the instructions in this section 6 direct that the items be omitted.