Dear Taxpayer…
The Internal Revenue Service will spend millions to let Americans know that a tax refund is on the way — and who should get credit for it, reports CBS News White House Correspondent Bill Plante.
"We are pleased to inform you that the United States Congress passed and President George W. Bush signed into law" the tax bill, "which provides long-term tax relief for all Americans who pay income taxes.
"The new tax law provides immediate tax relief in 2001 and long-term tax relief for years to come."
The first-of-their-kind notices describe when each taxpayer should get a check and how certain tax rules could affect it. There are two versions: one for those who paid taxes this year and will get refunds, and another for those who didn't pay taxes or were claimed as a dependent.
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The IRS says Congress instructed the agency to send a notification letter. But Congress didn't tell them what to say — the IRS worked that out with the White House.
Both the White House and the IRS said the letter would inform taxpayers and save the IRS time answering phone calls from confused taxpayers.
"The letter contains the information the taxpayer needs," said IRS spokesman Terry Lemons.
But Democrats who didn't vote for the tax bill called the letter shamelessly political, suggesting it sounded more like a sweepstakes promotion and would cost more than $21 million.
"This letter looks more like it was written for a candidate in a campaign than for a government agency," Sen. Charles Schumer, D-N.Y., told reporters. "They're bragging about the tax cuts."
The Internal Revenue Service plans to mail the notices in July reminding taxpayers about the refunds of up to $300 for a single taxpayer and up to $600 for a married couple &3151; part of the overall 10-year, $1.35 trillion tax cut.
The IRS expects to begin mailing the refund checks later in July in a process officials said will take about three months.
"The mailing is both political and unnecessary," Schumer said. "It announces that taxpayers will receive a rebate check in the mail. It's a little silly to go to the expense of sending out more than 90 million letters to give a two week heads up on the checks going out in the mail."
Schumer urged Treasury Secretary Paul O'Neill in a letter Tuesday to stop the notices, which Schumer said "could harm the reputation of the IRS" and set a costly precedent.
White House spokesman Ari Fleischer defended the notices, telling reporters they represent "good government" and suggesting that Democrats who complained about them were unhappy that Bush and Republicans had enacted their centerpiece domestic priority.
"The president is very proud that the taxpayers are about to receive a first-time rebate, because there has been an overpayment in taxes," Fleischer said. "Now, we understand that there are many people on Capitol Hill who oppose tax relief and they do not like the idea of taxes being cut."
The effort to publicize the tax rebate has also hit cyberspace. The usually bland Treasury Department Web site now displays, in large red lettering, notice of a "Tax Rebate Alert!"
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