The Check's In The Mail - tax rebates - Brief Article

California CPA, July, 2001

The IRS is concerned about getting swamped with phone calls concerning taxpayer refund checks that will soon be issued as a result of recent tax law changes.

James C. Counts, a Hemet-based CPA and editor of TaxTalkNews, an e-newsletter, recommends sending your clients a one-page newsletter alerting them to refund facts. Counts has contacted the IRS and compiled the following list of information to pass along:

* Taxpayers must file a return for tax year 2000 to be considered for the advance payment ("tax rebate").

* Beginning in July, letters will be sent to all taxpayers indicating the amount of the payment they will receive and when they will get the check.

* The IRS cannot give a refund amount to any specific taxpayer at this time.

* The IRS believes that normal offset will occur to tax and non-tax debt (i.e. past due child support, etc.).

* The IRS is expected to begin mailing the checks by the third week in July.

* All payments will be made by check--direct deposit is not available.

* There is nothing the taxpayer needs to do to receive this payment.

* Taxpayers who have moved since their last tax return was filed should file a Form 8822, Change of Address, as soon as possible to ensure that they receive their check.