Circuit Breaker – Follow Up

As a follow-up to John Woods 26 Mar 2017 post about issues with negative adjustments on line 6 of Schedule CB, we are providing the following additional guidance.

For those situations in which the return as already been filed and the taxpayer gets a letter from the DOR questioning it, the volunteer should verify the only issue in the letter is the negative number on CB line 6 and the CB income calculation is correct and then give a copy of this Standard Response Letter to the taxpayer to use to respond to the DOR’s inquiry.  The letter will explain the situation. so the examiner can rapidly move forward to close out the inquiry (assuming that’s the only issue).

For those returns not yet filed, but which need a negative adjustment on CB line 6 (such as the rollover of a 401K plan), volunteers should instruct the taxpayer to paper file their Massachusetts return. This should be printed and given to the taxpayer to mail, along with a copy of this CB – Cover Letter to DOR for Returns with Negative Adjustment on Line 6.  For more detail, see the 26 Mar 2017 post (Circuit Breaker).

These letters can also be found in the reference material tab under the Massachusetts AARP Tax-Aide heading.

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