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Dateline: Aug. 10, 2001
The IRS is deducting outstanding government debts from the advance tax payment rebate checks now being mailed to taxpayers.
While such debts are typically withheld from regular annual income tax refunds, many taxpayers were not aware that this practice would also be applied to the rebate checks.
Debts such as back taxes and delinquent federal student loan or child support payments are being deducted. If the advance payment amount is larger than the debt, the taxpayer will get a check for the difference. If the full advance payment is applied to the debt, the taxpayer will not receive a check, according to the IRS.
Veterans may also find their advance tax payment check reduced in order to pay debts incurred for non-service related treatment in VA medical facilities or for overpayment of Veterans' benefits.
In March the U.S. Treasury Department began deducting money from veterans' benefit checks to settle debts they owe to the VA. [See: Veterans Must Pay VA Debts]
Persons with unpaid federal student loans can check the status of their account, including current balance, payment history and payoff amount at the U.S. Department of Education's Direct Loan Servicing Web site: http://www.dlservicer.ed.gov/
Federal student loans are considered to be delinquent when a payment has not been made for 180 days. The IRS can also withhold delinquent student loan payments from regular annual tax refunds.
The IRS began sending informational letters and checks in July and will continue to do so at least through September 2001, according to the last two digits of taxpayer's Social Security numbers. Here is the schedule of mailings:
Last 2 Digits
of SS Number Checks Delivered Week Of
10 - 19 July 30
20 - 29 August 6
30 - 39 August 13
40 - 49 August 20
50 - 59 August 27
60 - 69 September 3
70 - 79 September 10
80 - 89 September 17
90 - 99 September 24
For married taxpayers who filed a joint return, the first Social Security number on the return will determine the mailing date for the advance payment check.
If you failed to receive your letter or check as scheduled, or if you disagree with the amount of your check or with any deductions from you check listed by the IRS, here are some numbers to call:
IRS Informational Phone Number: Toll Free 1-800-829-1040
For the Hearing Impaired: Toll Free 1-800-829-4059 (TDD)
National Taxpayer Advocate: (202) 622-6100 or FAX at (202) 622-7854
Veterans or families of veterans who disagree with IRS reductions to their checks should call the VA's main information number at: Toll Free 1-800-827-1000. Veterans should also see the VA 1-Stop Service Inquiry Web site at:
http://www.va.gov/customer/consumer2.asp
Some taxpayers who moved since filing their year 2000 tax returns, and did not make mail forwarding arrangements through the Postal Service have experience delays in receipt of their letters and checks.
