Q: Is the federal tax rebate project underway?
A: Starting in late July, the Internal Revenue Service will begin to send every taxpayer who filed a 2000 tax return a refund check from the federal government. The distribution of the checks is based on the last two digits of the Social Security number of the taxpayer listed first on the 2000 return, starting with 00 and proceeding through 99. Married filers will receive a maximum $600 rebate, single filers up to $300 and up to $500 for heads of households. The rebate checks were included in the 10-year, $1.35 trillion tax relief package I steered through Congress as chairman of the tax-writing Senate Finance Committee. While it is a massive logistical effort to ship out 91.6 million checks to taxpayers across the country, the fact remains that American taxpayers indeed will get to decide how to save, spend or invest this unanticipated bonus from Uncle Sam. The cash infusion also should provide a shot in the arm to the economy as the rebate checks will unleash $39 billion into consumers' pockets. From rebate checks to rate reductions, America's taxpaying men and women deserve to keep more of their hard-earned money. I'm glad taxpayers will see immediate relief from the first major tax cut law enacted in a generation.
Q: How can Iowa taxpayers find out when their check's in the mail?
A: Iowans can visit my web site at http://grassley.senate.gov to link to a tax rebate database that will calculate when your check will be sent out to you. The first checks are scheduled to go out the week of July 23 and continue through September. Unfortunately, the U.S. Treasury Department reports that unscrupulous individuals or groups may be trying to turn a quick buck by charging folks for this information, in addition to how much money they can expect to receive. It's a shame, but hardly a surprise that scam artists have leeched on to the tax rebate effort to bilk consumers. So far, mail-order marketing tactics have been reported in Missouri, Mississippi, Oklahoma and Ohio. If Iowans come across a pitch by someone offering to track down the status of your rebate check for a small fee, don't open your wallet. People need to know that the IRS in late July will notify all U.S. taxpayers by mail if they can expect a rebate, for how much and when it will be sent. Upon receipt, the IRS recommends that taxpayers retain this letter for their records. Those who aren't eligible for the rebate also will receive a letter of explanation. Taxpayers who recently have moved are urged to notify the U.S. Postal Service to avoid delay in receiving your check. Or, you may file the information directly with the IRS using its change of address document, Form 8822.