W&M Subcommittees Announce Joint Hearing on Economic Stimulus Payments

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

On February 7, 2008, the Congress passed the "Economic Stimulus Act of 2008," which was signed into law by the President on February 13, 2008 (P.L. 110-185). This law provides lower-income and middle-income working families, and certain seniors and disabled veterans, with an economic stimulus payment (commonly referred to as a "rebate check").

The rebate check generally is equal to the lesser of a taxpayer's net income tax liability or $600 ($1,200 in the case of married couples filing a joint return). In the case of taxpayers with qualifying income (defined as earned income, Social Security benefits, disabled veteran benefits, and benefits for widows of disabled veterans) of at least $3,000 and taxpayers with positive income tax liability, the rebate check will not be less than $300 ($600 in the case of married couples filing a joint return). The amount of the rebate check is increased by $300 for each child under the age of 17. The rebate check phases out for high-income taxpayers.

To receive a rebate check this year, eligible taxpayers must file an income tax return for the 2007 tax year by October 15, 2008. There are special filing requirements for taxpayers who normally are not required to file an income tax return ("ESP filers"). The Internal Revenue Service ("IRS") estimates that 130 million economic stimulus payments will be sent to eligible taxpayers, including ESP filers. For returns filed by April 15th, economic stimulus payments that were direct deposited have been completed, and, by July 11th, the remaining checks are scheduled to be mailed. Through June 5, 2008, about 67 million economic stimulus payments have been made.

To administer the rebate checks, the IRS and the Social Security Administration ("SSA") received an additional appropriation of $50.7 million and $31 million, respectively, to ensure that the rebate checks are fully and properly paid. These funds have been used, in part, to educate, assist, and locate taxpayers eligible for the rebate checks.

While the IRS and SSA reach out to taxpayers and beneficiaries to increase public awareness, they also must protect taxpayers from identity thieves who use fraudulent schemes and tax scams involving the rebate checks to obtain personal and financial information and claim someone else's rebate check. The Federal Trade Commission and the Internet Crime Complaint Center ("IC3") report an increasing number of identity theft complaints referencing the economic stimulus payments. The IRS has issued warnings to taxpayers about rebate check scams and expects these scams to continue.

"Time is running out for millions of elderly and working Americans to file tax returns and receive a rebate check this year," said Oversight Subcommittee Chairman Lewis. "Some problems have developed with the rebate checks, and it is preventing relief from getting to people who are struggling to keep up with rising costs. We must work quickly to address these problems and help ensure that the rebate checks reach everyone who is eligible."

Social Security Subcommittee Chairman McNulty said, "Economic stimulus rebates must be delivered quickly and accurately to achieve their purpose of stimulating the economy. Earlier this year, Congress asked the Social Security Administration to help reach seniors and other beneficiaries who do not usually file tax forms so they could receive a check if eligible. We provided SSA with additional resources to perform this duty and this hearing presents an opportunity to determine whether SSA's and IRS's efforts were successful."

FOCUS OF THE HEARING:

The Subcommittees will review the status of the economic stimulus payments. They will examine the number of returns received and processed, the number of rebate checks issued (direct deposit and paper), the amount of the rebate checks issued, the overall payment schedule of rebate checks, and outreach activities conducted by the IRS and the SSA to locate individuals eligible for the rebate checks. Further, the Subcommittees will examine problems experienced by individuals eligible for rebate checks and what can be done to address these problems.

The Subcommittees also will examine the identity theft schemes developed to date and review actions taken in response. Finally, the Subcommittees will ask the agencies to examine how to protect Social Security beneficiaries and other individuals from identity theft schemes using rebate checks as a lure.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please Note: Any person(s) and/or organization(s) wishing to submit comments for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, http://waysandmeans.house.gov/, select "110th Congress" from the menu entitled, "Committee Hearings" (http://waysandmeans.house.gov/Hearings.asp?congress=18 (http://waysandmeans.house.gov/Hearings.asp?congress=18). Select the hearing for which you would like to submit, and click on the link entitled, "Click here to provide a submission for the record." Follow the online instructions, completing all informational forms and clicking "submit" on the final page. Attach your submission as a Word or WordPerfect document, in compliance with the formatting requirements listed below, by close of business Thursday, July 3, 2008. Finally, please note that due to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call (202) 225-1721.

FORMATTING REQUIREMENTS:

The Committee relies on electronic submissions for printing the official hearing record. As always, submissions will be included in the record according to the discretion of the Committee. The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines. Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below. Any submission or supplementary item not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. All submissions and supplementary materials must be provided in Word or WordPerfect format and MUST NOT exceed a total of 10 pages, including attachments. Witnesses and summiteers are advised that the Committee relies on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. All submissions must include a list of all clients, persons, and/or organizations on whose behalf the witness appears. A supplemental sheet must accompany each submission listing the name, company, address, telephone and fax numbers of each witness. Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov. The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.

Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov. http://waysandmeans.house.gov