Tax Stimulus Rebate News and Notes

by Roy A. Lewis, E.A. - May 15, 2008

How Much? When we prepared your return, we informed you of the estimated amount of rebate that you could expect in both the "general" and "analysis" section of your return. If you can't find that amount, feel free to call the office and we'll be happy to provide that information to you again. Or, you can visit the IRS web site and play with the stimulus calculator. You'll want to have a copy of your 2007 tax return in front of you in order to enter the information. If you enter the correct information, you'll receive information on the amount of your rebate.

Where is My Money? The IRS has now begun mailing out the stimulus rebate checks. They are also concluding all direct deposits of the rebate checks this week. If you were expecting a direct deposit of your rebate check and don't find your money in your bank account by Friday, May 16th, then you will probably have to wait for a paper check in the mail. Check the IRS website for the "Where's My Stimulus Payment" page. Enter your personal information, and you should be able to check on the status of your rebate.

If you will be receiving your tax refund by mail, you may have to wait until as late as July 11th to receive yours in the mailbox. You can find the most recent schedule for mailing the rebate checks at the IRS web site along with additional information. The rebates will be mailed according to the last two digits of your social security number. Social security numbers with the last two digits between 00 and 09 will have their rebate checks mailed on or around May 16th. Those with the last two digits between 88 and 99 will have to wait until about July 11th for the IRS to mail your rebate check. Social Security numbers between those noted above will receive their rebate checks according to the IRS schedule of payments.

Remember that this schedule assumes a timely filed tax return (i.e., filed by April 15, 2008). If your return was filed after that date, your rebate will be processed by the IRS as quickly as possible, but there is no schedule for payment, regardless if you'll be receiving a paper check or direct deposit.

Say What? If you owe any back taxes or are behind in Child Support, the IRS will take whatever money you owe before you see a penny of your rebate. So while you may be due a rebate, you'll not actually receive one. Instead you'll be notified by mail that your rebate check was offset against other taxes or obligations.

Scammers Abound! Now, that the Rebate Checks are on the way, The IRS is warning about an epidemic of bogus e-mails designed to steal your Social Security number or Bank Account number. These e-mails appear to come from "IRS.gov" and typically contain the IRS logo. They tell you to speed up your tax refund or stimulus check, you should register online. Don't do it!!! This is nothing more than a scam to steal your identity.

The IRS will never e-mail you for information. Never give personal information (including social security number, bank account information, credit card information, etc.) in response to any e-mail, even if it appears to be from your bank or a government agency.

The Latest in Stimulus News: According to news reports, some of the economic stimulus rebates are being deposited in the wrong bank accounts or are being sent to the wrong addresses. The IRS has determined that about 1,500 of payments went to the wrong bank account and that the agency is working with taxpayers and banks on a case-by-case basis to resolve this issue as quickly as possible.

As to the erroneous notices, which include a taxpayer's name, address, and last four digits of his/her SSN, IRS is still scoping out the size of the problem and is working with its printing contractor to ensure that no further notices are sent to the wrong person.

At the same time, the media are reporting that a larger problem, caused by computer and human errors, has caused approximately 350,000 rebates to be issued incorrectly. In these cases, the rebates are missing the $300 per child. IRS says it has identified the recipients of these mistaken rebates and is in the process of mailing them an explanation letter. Corrected checks should be mailed in July.

Curiously, IRS has posted nothing directly to the public on its website with respect to these problems, either in the FAQ section or as a news release, and has said nothing to its tax industry partners.