IRS Wasteful


A Hoboken411 reader said this circumstance of waste by the IRS reminded him of Hoboken.

Dear Taxpayer: This letter cost you $42 million

wasted-irs-money.jpgAt a cost of nearly $42 million, the IRS wants you to know: Your check is almost in the mail.

The Internal Revenue Service is spending the money on letters to alert taxpayers to expect rebate checks as part of the economic stimulus plan.

The notices are going out this month to an estimated 130 million households who filed returns for the 2006 tax year, at a cost $41.8 million, IRS spokesman John Lipold confirmed.

That works out to about 32 cents to print, process and mail each letter. It doesn’t include the tab for another round of mailings planned for those who didn’t file tax returns last year but may still qualify for a rebate.

Democrats accused the Bush administration of wasting time and postage.

“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 said Friday, arguing the IRS could more effectively spend the money to catch tax cheats.

The IRS spokesman declined to comment on Schumer’s criticism.

Read the rest after the jump!


“Dear Taxpayer,” the letters will begin, going on to say the IRS is pleased to inform the recipient that Congress passed and President Bush signed into law a plan that will provide payments of up to $600 for individuals who qualify or $1,200 for married couples filing jointly. The rebates are the centerpiece of a $168 billion economic stimulus package.

The actual rebate checks are scheduled to go out starting in May, after the IRS has finished separately mailing out routine refunds for the 2007 tax year.

The letters will be a reminder that people need to file a 2007 tax return so they will receive the rebate if they are eligible for it.

Similar notices will go out later to some Social Security recipients and those who receive veterans benefits — groups that often do not file tax returns.

For those people to get a rebate check, they will need to file a tax return if they received at least $3,000 from a combination of certain Social Security benefits, veterans benefits and earned income. The minimum payment for this group will be $300 for an individual and $600 for a couple filing jointly.

Not everyone will be eligible. Singles with income of more than $75,000 and couples with more than $150,000 get only partial rebates, if any.

People who earn less than $3,000, illegal immigrants and anyone who does not file a tax return will miss out. Singles with incomes exceeding $87,000 and couples with incomes exceeding $174,000 also won’t qualify, although those caps rise by $6,000 per child.

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4 Comments on "IRS Wasteful"

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Tama Murden

More black comedy, courtesy of the Feds.

Homeworld is spot on.

In addition to this example of your tax dollars pissed away into your mailbox…

Are there any folks with audit horror stories they care to share?


I just got mine today. It’s not a postcard, but a more expensive tear-three-edges-off type of letter. What a waste of taxpayer dollars. Also, the IRS knows how much people made last year. If they had to send a self-congratulatory notice, why not just to those in the range that might qualify instead of 130 million households?


So they’re wasting $42 million to mail us a postcard that says not to waste money?


Let me get this out of the way: B-B-B-BUT CLINTON!!! >insert unhinged hate here