Millions Missing Out on Rebates

Under the economic stimulus package enacted this year, most taxpayers are eligible for a rebate of $600, or $1,200 for a married couple, plus $300 for each dependent child. In addition, retirees and disabled veterans who received at least $3,000 in benefits in 2007 are eligible for a rebate of $300, or $600 for a married couple.

 
To receive the rebate, they must file a 2007 tax return – even if they owed no federal tax last year.

The IRS estimates that about one-fourth of the 20 million veterans and retirees eligible for a rebate haven’t filed the form required to get a check. Retirees and veterans don’t have to fill out an entire tax return to receive the rebate. They need to write in just a few lines on Form 1040A. The return must be filed before Oct. 15.

Shulman stressed that filing a tax return won’t affect retirees’ benefits, trigger an audit or force them to file tax returns in the future. "Some people don’t want to file a return because they might be afraid of the IRS," he says. "We’re really here to help."

Later this summer, the IRS will mail letters to the 5.2 million retirees and veterans, explaining the procedure. The letters will include a copy of Form 1040A, which recipients can fill out and return to the IRS.
 

Retirees and veterans who have questions about their rebates can also contact their local Taxpayer Assistance Center, Shulman says. A list of local offices and their phone numbers is available at www.irs.gov.
 

People who have tried to call the IRS in recent weeks have endured long waits, Nina Olson, the agency’s national taxpayer advocate, told a congressional hearing Thursday. "Only one out of every 10 callers to the stimulus (telephone) line has spoken to a live human being," Olson said. Shulman acknowledges that the IRS phone lines have been busy but said he expects volume to slow by the end of the month. "If people are willing to wait 15 minutes, they can still get through," he says.

So far, the IRS has issued 76.5 million rebate payments worth $63.8 billion. It expects to issue 124 million payments by the end of the year.