Grassley works to help ensure smooth sailing on tax rebate checks

WASHINGTON – Sen. Chuck Grassley, chairman of the Committee on Finance, and ranking
member Sen. Max Baucus today asked the government agencies that will mail out 95 million tax
rebate checks to verify that the mailing will go smoothly.

“When we tell taxpayers the check’s in the mail, the check absolutely has to be in the mail,”
Grassley said. “Government agencies should have every ‘i’ dotted and every ‘t’ crossed to make sure
tax rebate checks go out to every deserving taxpayer, without any snags and with a good way to
respond to consumers’ questions. Smooth sailing on tax rebate checks is what Congress intended.”

The tax rebate checks will go out under the comprehensive tax relief legislation just passed
by Congress, under Grassley’s leadership. President Bush is expected to sign the legislation this
Thursday. The Internal Revenue Service estimates it will send 95 million rebate checks starting in
July and ending in October. The rebate checks will amount to as much as $300 for individual
taxpayers, as much as $500 for heads of households and as much as $600 for joint returns.

The text of the Grassley-Baucus letter follows.

Via Regular Mail and Facsimile: Treasury (202-622-0534),
IRS (202-622-4735)

The Honorable Paul H. O'Neill
Secretary
United States Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220

The Honorable Charles Rossotti
Commissioner
Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, D.C. 20224

Dear Secretary O'Neill and Commissioner Rossotti:

We are writing to express our commitment to overseeing that the United States Department
of the Treasury (Treasury) and the Internal Revenue Service (IRS) perform their responsibilities
effectively pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (2001 Act).
These responsibilities include the timely and proper disbursement of tax rebate checks. Specifically,
the 2001 Act provides for individuals to receive a maximum tax rebate of $300 back this year, single
parents to receive up to $500, and married couples to receive a maximum of $600. Since mailing
one-time rebate checks is a unique undertaking, we want to make certain that you have a plan and
are well-equipped to carry out this task.

Accordingly, we appreciate your responses to the following requests:

1. Please describe how the Treasury and the IRS plan to implement the requirement to issue tax
rebate checks to taxpayers.

2. Please describe how the Treasury and the IRS will utilize their human and computer
resources to provide timely and accurate notice to taxpayers regarding their rebate and the
amount, and regarding the actual disbursement of the rebate checks.

3. Please describe how the Treasury and the IRS intend to minimize waste, fraud, and abuse in
implementing the tax rebate.

4. Please describe any other problems that the Treasury and the IRS anticipate in implementing
the rebate program.

5. Please explain whether the Treasury and the IRS intend to establish a toll-free number
dedicated to customer service to respond to taxpayer questions regarding the tax rebate.

6. Please describe what impact, if any, the tax rebate program will have on other programs
and/or projects that the Treasury and the IRS expect to undertake this fiscal year.

Your cooperation in responding to these requests by Friday, June 15, 2001, is appreciated.

We also look forward to monthly updates beginning in July 2001 regarding your progress in meeting
your goals.

Sincerely,

_______________________ _______________________

Charles E. Grassley
Chairman

Max Baucus
Ranking Member

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