Dear Taxpayer: This Letter Cost You $42M

Bush Economic Adviser Says Sending 130 Million Notices Will Clear Up Confusion About Tax Refunds

(AP)  At a cost of nearly $42 million, the IRS wants you to know: Your check is almost in the mail.

The Internal Revenue Service is spending the money on letters to alert taxpayers to expect rebate checks as part of the economic stimulus plan.

The notices are going out this month to an estimated 130 million households who filed returns for the 2006 tax year, at a cost $41.8 million, IRS spokesman John Lipold confirmed.

That works out to about 32 cents to print, process and mail each letter. It doesn't include the tab for another round of mailings planned for those who didn't file tax returns last year but may still qualify for a rebate.

Democrats accused the Bush administration of wasting time and postage.

"There are countless better uses for $42 million than a self-congratulatory mailer that gives the president a pat on the back for an idea that wasn't even his," Sen. Charles Schumer said Friday, arguing the IRS could more effectively spend the money to catch tax cheats.

Keith Hennessey, director of the president's National Economic Council, said the letters are being sent to explain how the tax rebates will work.

"Any time you do something as a government tens of millions of times, there is ample room for people to get confused. And so if you're going to have tens of millions of taxpayers getting checks, you want to get the information out so that you have as few people as possible confused about what's happening, they understand what's coming, and it reduces the number of incoming requests that IRS and Treasury have to figure out how to deal with it," said Hennessey.

"Dear Taxpayer," the letters will begin, going on to say the IRS is pleased to inform the recipient that Congress passed and President Bush signed into law a plan that will provide payments of up to $600 for individuals who qualify or $1,200 for married couples filing jointly. The rebates are the centerpiece of a $168 billion economic stimulus package.

The actual rebate checks are scheduled to go out starting in May, after the IRS has finished separately mailing out routine refunds for the 2007 tax year.

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.

Similar notices will go out later to some Social Security recipients and those who receive veterans benefits - groups that often do not file tax returns.

For those people to get a rebate check, they will need to file a tax return if they received at least $3,000 from a combination of certain Social Security benefits, veterans benefits and earned income. The minimum payment for this group will be $300 for an individual and $600 for a couple filing jointly.

Not everyone will be eligible. Singles with income of more than $75,000 and couples with more than $150,000 get only partial rebates, if any.

People who earn less than $3,000, illegal immigrants and anyone who does not file a tax return will miss out. Singles with incomes exceeding $87,000 and couples with incomes exceeding $174,000 also won't qualify, although those caps rise by $6,000 per child.

[keithle1]

I don''t want my $600. It''ll put me into a higher tax bracket.

[kevzgrl]

This is so *** stupid - why not just publicize it on tv, radio, the internet and in newspapers. Why spend an additional 42Million$ to tell people their check is in the mail. Typical government idiocy, courtesy of the Bush administration. January 2009 can''t come soon enough for me!

[keithle1]

I like the suggestion "olebd". Let us vote on what we want to spend the tax money on. We could put down our top 3 choices. Instead of having the folks in Congress & the President decide for us. Power to the people.

They should have asked the American people if we wanted to go to war with Iraq. Check "Yes" or "No".
Our military men & women have to do the fighting. They have to back up the words that the idiot Dubya says. Let Americans decide if we want to spend all those billions on a war. It''s our money. We pay the taxes.

Bush took what was NOT a haven for Islamic terrorists & turned it into one.

[olebd]

Wouldn''t it be great if we could have more say as to where our tax money goes? Especiaslly for the silly, wasteful, small things such as this idea? The government should launch a website where we can cast mini votes to yay or nay these ideas they come up with. Why do we need this reminder? Did we get a reminder a few years ago when they sent out the other rebate checks? I don''t think so. Why is this necessary? Money is deparately needed in so many other area. This is such a waste.

[keithle1]

Much ado about nothing. "..up to $600 for individuals.." I''ll try not to get too excited. I''m supposed to run out to the mall when I get my check? Spend it all. This is going to help the economy? For how long? Hmm... If I save it, that won''t help the economy. People using the money to pay down credit card debt don''t help the economy either.

The old folks will get confused. Guaranteed.

"The rebates are the centerpiece of a $168 billion economic stimulus package." Centerpiece? Really?

How many more months til the election?

[bb19631]

Stop wasting money on those stupid letters and SHOW ME THE MONEY!

[ioweign]

There are a lot of Democrats that need anger management classes...


Posted by tburzio at 04:58 PM : Mar 07, 2008

And there are a lot of Republicans with their porch lights on but nobody is home...

[feddupp]

HEY--here''s an IDEA--how about instead of sending out those stupid letters--just ADD that $$$$ to the REBATE checks!! Since it''s burning a hole in the government''s pockets!
We could certainly USE MORE of our $$$ back!

[inventagod]

Dear Taxpayer: This President cost you the economy...
We won''t be able to collect enough from you or your kids to pay for that Iraq Oil Invasion...

[jdubs63]

WHO CARES????