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IRS still looking for 5M rebate recipients

June 20, 2008

Around 5 million people are eligible for rebate checks, but have yet to file the necessary 1040 forms to collect the money.

Some of these folks are like the hubby and me, procrastinators who filed for an extension.

But the most of the yet-to-be-delivered checks are destined for individuals who receive Social Security and some veterans’ benefits. That group, which usually doesn’t have to file tax returns, is still lagging despite IRS rebate notification efforts.

Douglas_shulman_irs_commish_2
IRS Commissioner Douglas H. Shulman (that’s him there at right) told lawmakers at a hearing Thursday on the rebate process (blogged about here) that the agency sent notices in March to an estimated 20 million rebate-eligible recipients of government benefits.

Only 15 million of those folks, however, have filed returns.

That’s the law: Other retirees were the concern of one Congressman. Rep. Kevin Brady (R-Texas) told the Commissioner that many seniors in his East Texas district were still confused about eligibility requirements.

Retired
teachers, especially those who retired many years ago and had low
salaries and small pensions now find they will not be receiving rebates, noted Brady. Is that correct, Brady asked Shulman.

"The law was written specifically that you had to have $3,000 in income or exempted benefits," replied Shulman. "Social Security counts. Private pension benefits don’t count. That’s the law."

When Brady continued to press the point, Shulman repeated his answer: "That’s the law."

I totally understand Brady’s concern about his retired teacher constituents. And having worked in a Congressional office, I know how persistent folks with problems can be and how frustrating it is when you can’t help them.

But in this case, the ineligibility is not an IRS issue. The agency is simply administering the law that Congress passed.

The questioning does make me wonder though just how many of Brady’s colleagues also are unclear as to what they agreed to in passing the economic stimulus measure.

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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.)

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