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Rebate check notices cost: $42 million

March 8, 2008

Remember a couple of days ago (in this blog item) I mentioned that the IRS will be sending out letters to 130 million households who filed 2006 returns to let us know about the coming stimulus package rebate checks?

Now we’re finding out what that information will cost us: nearly $42 million.

At 32 cents to print, process and mail each
letter, the exact cost is $41.8 million, IRS spokesman John Lipold told the Associated Press.

And that’s just for the first round of mailings, scheduled to start next week. Another batch is planned for end of the month for folks who didn’t file tax returns last year but might be eligible for a rebate.

As expected, the notification process and price has become political.

"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 (Dem.-N.Y.) said Friday. Schumer suggested that the millions could be better spent targeting tax cheats.

The director of the president’s National Economic
Council, Keith Hennessey, contends the mailings are needed to prevent confusion.

"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.

No estimate yet on what the cost will be to deliver the rebate checks themselves.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • $42 MILLION TO FIND OUT ABOUT YOUR $600

    The tab for the letters that will tell you that you might get a rebate will be $42 million. Kay…

  • Cristin, San Francisco CA

    Are you kidding me?
    No, really.
    In this day and age of electronic information i cannot understand how the government does not utilize the cost saving methods of that e-lek-tronik online business.
    You know, that e-mail stuff?
    I know, I know, it’s still in it’s experimental stages. . . but for one generic identical letter that everyone is recieving? (We recieved 3 at my household)
    Couldn’t they have just posted an ad in the paper? Bilboards? We all already knew it was coming!

  • SSI's think they will ALL get Rebate!

    Less Confustion? Uh, not in my very, very small Mountain community in way up Northern California. There are approximately 265 people in my tiny old Gold Rush town in far Northern Cali. There are probably 1/2 dozen people that actually WORK living up here. Almost every living breathing human being up here exists EXCLUSIVELY on nothing but, SSI, Supplemental Security Income. THEY ALL GOT THE 1st NOTICE FROM THE IRS, and they are all going to file a ‘FREE’ tax return to get a Stimulus Rebate Check. They are all screaming and yelling, “If I got a notice, I will get a check then!”. So, they are all jumping to get the free tax for Stimulus 1040A filed on a Title XIV income. That is not a savings of my tax dollars, it is more tax dollar waste. No wonder things are in a distasterous mess! I would not doubt if they ALL GET A STIMULUS back either!

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