A prison sentence or confinement for a conviction for a criminal offense changes the income tax liability for annuity payments and the reports required by the RRB to the IRS.
If you are or your spouse is confined as a result of a conviction for a criminal offense, report this to the RRB. The RRB will then determine if any payment changes are required. Also report if you receive a spouse annuity based on a child in your care or the Special Guaranty computation including a child and that child is confined due to a conviction for a criminal offense.
Places of confinement include prisons, jails, hospitals, schools, halfway houses, or other facilities in which a person is under the control and jurisdiction of a penal system. The period of confinement ends when the prisoner is paroled or released because the sentence has ended, been suspended, or overturned.