IRS Notice Of Rebates -- Believe It Or Not

snipped-for-privacy@nospamplease.net (William Brenner) posted:

It's actually worse than that -- according to the AP story I read, "the notices are going out to the 130 million households who filed returns for the _2006_ tax year ... and are "being sent to explain how the tax rebates will work."

Finally, the story says, "the letters will be a reminder that people need to file a 2007 tax return so they will receive the rebate _if they are eligible for it_." [Note emphasis added by me.]

We're already being driven crazy, at the AARP TaxAide site where I work, by the hordes of people who've been reading the extensive publicity campaign regarding the "stimulus package." Guess this means we'll be jammed during our last two weeks -- when we usually finish up with those who have the most difficult, complex returns and have awaited K-1s or just delayed filing because they owe a lot.

Someone in the TaxAide hierarchy said the IRS is floating the idea that we might remain open longer, with the tax-filing season being extended. Gee, it's easy to offer extra service when it's being provided by _volunteers_.

(Wonder if all "volunteers" will agree to extend their tour of duty. Seems to me I remember vowing about 50 years ago, that I'd never again volunteer for _anything_! Yet, here I am. ;-)

Bill

"William Brenner" wrote

And the economic stimulus is being felt by the supplier of envelopes, paper and check stock, and pringing ink.

Ain't it though. I heard somewhere that they set aside $300 million for administrative costs for this program.

Remember that the national sales tax imitative has these things (rebate checks) being sent out monthly. One should be wondering if we can afford such a change.

William Brenner wrote in news:f2vAj.538$Q52.162 @bignews9.bellsouth.net:

I assume these notices will go equally to those who caused the crisis by either borrowing more than they could possibly repay, to those who made 10s of millions by pushing people into mortgage they had no business getting, and to those who "securitized" those mortgages-which-couldn't-fail-to-fail, who were equally well paid. Note that some people at the top of banks are now under investigation for having salaries totally out of relation to performance.

that should help boost the economy.

By Congressmen. Pot this kettle you're black (g).

Additional good news: Following this mailing, IRS will also send notices to eligible SS and disabled people, many of whom do not file tax returns. There was no estimate of the number involved or the additional cost.

Your close... it's $297,310,000.

Congress, in its infinite wisdom actually appropriated the money in the tax act.

(1) IN GENERAL- Immediately upon the enactment of this Act, the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2008:

(A) DEPARTMENT OF THE TREASURY-

(i) For an additional amount for `Department of the Treasury--Financial Management Service--Salaries and Expenses', $64,175,000, to remain available until September 30, 2009.

(ii) For an additional amount for `Department of the Treasury--Internal Revenue Service--Taxpayer Services', $50,720,000, to remain available until September 30, 2009.

(iii) For an additional amount for `Department of the Treasury--Internal Revenue Service--Operations Support', $151,415,000, to remain available until September 30, 2009.

(B) SOCIAL SECURITY ADMINISTRATION- For an additional amount for `Social Security Administration--Limitation on Administrative Expenses', $31,000,000, to remain available until September 30, 2008.

The IRS doesn't do anything without Congressional direction. It wouldn't surprise me in the least to find a little clause in the authorization legislation that requires the IRS to "perform all necessary steps to educate the taxpayer regarding eligibility for stimulus rebate" or some such claptrap.

Any prudent business owner would appreciate the need for pre-emptive communication with its customers, when undertaking an initiative which affects the majority of those customers.

Can you imagine the toll free switch boards lighting up the days after the anticipated distribution date(s) when a customer does not receive their stimulus payment in the mail or bank account?

The man hours needed service these inquires is costly, not to mention to detraction of operations on other mission goals, collecting A/R's, other anticipated contacts, reactions to audits adjustment letters....etc.

This is an investment in ensuing overall customer service is not affected by the unusual event.

Where I am, auto insurance regulations recently changed to allow greater competition, on 4/1/2008 these changes go into effect.

My insurance agent sent -ALL- his clients letters to explain the changes coming with important tips to watch out for, obviously this was done to minimize the impact his staff might experience occur if the client base all called in the week of transition to inquire, complain, moan & groan about what is happening. Why they should or should not change policies, agents or underwriters to save a few dollars on their insurance portfolios.