Tax refund notices create questions
Associated Press
WASHINGTON — Millions of taxpayers are calling the IRS with questions about the tax refund checks going out this summer.
Internal Revenue Service officials say they've received more than 8.6 million phone calls since July 16, when taxpayers began receiving the 112 million IRS notices describing details of the checks, such as when they would arrive and why some people wouldn't be getting one.
That kind of call volume usually only occurs during the height of spring tax filing season, said IRS spokesman Terry Lemons.
About 92 million checks of up to $300 for single taxpayers, $500 for heads of households and $600 for married couples filing jointly are being sent weekly through Sept. 30 as the first installment of the 10-year, $1.35 trillion tax cut signed into law in June by President Bush.
The checks represent this year's payment for the new 10 percent income tax bracket, which was made retroactive to Jan. 1.
The Treasury Department yesterday mailed out 8.1 million checks totaling $3.4 billion to taxpayers whose Social Security numbers end in 10 through 19.
Some questions and answers from the IRS:
Q: Who doesn't qualify for a check this year?
A: People who paid no income taxes in 2000 are ineligible. On the 1040 form, if line 51 shows a zero, no tax was paid. Form 1040A filers should look at line 33 and for form 1040EZ filers, see line 10.
Anyone who could be claimed as a dependent on another person's tax form in 2000 also will not get a check. This information is on box 6a on forms 1040 and 1040A; on the 1040EZ form, look for a blank in box 6a or a "yes" check on line 5.
Q: What about those who paid taxes and were not dependents but still get no check?
A: Many people may have paid taxes for Social Security and Medicare or self-employment tax, but only income taxes count. Millions of taxpayers also had income taxes deducted from their paychecks during 2000, but got it all back through a refund because of exemptions, deductions and credits that reduced the tax to zero.
Q: Did some people make too little money to get a check for the full amount?
A: To qualify for the maximum, a single person had to have $6,000 in taxable income, a married couple $12,000. The IRS says a couple with two children would need gross income of at least $30,550 to have enough taxable income for a full $600 check.
Q: Besides back taxes owed, what else can reduce the check amount?
A: Checks can be reduced, even to zero, if a taxpayer owes debts such as certain child support obligations or student loans. The IRS is basing the amount on the 2000 tax return and will not refigure it based on an amendment return or later adjustment.
Q: Can such a taxpayer still get the full amount?
A: The checks are based on 2000 tax returns, but many taxpayers may be in a different situation this year. If a check is for less than the maximum, a taxpayer may be able to claim the difference on 2001 tax returns filed next April. Some who got no check at all may be able to make a similar claim. The IRS plans to include a worksheet in the instructions next year to help figure this out.
Q: What about taxpayers who never got a refund notice?
A: Processing of the returns filed in April takes the IRS until mid-July every year. That first batch of notices didn't include some of those final returns, but IRS officials say they will send notices to every taxpayer before any check arrives.
