Porkulus, Tax Refund, 15 Million Stiffed
You gotta love that stimulus plan. Touted by the Obama Administration as necessary to get the US economy going again after President Bush and the GOP get blamed and bashed for everything including the recession and the so-called financial meltdown. Let’s not talk about how it would keep unemployment from rising above 8%. (now over 10%) And let’s not talk about all the jobs it would create. (up to 4 million) But how about those stimulus checks to taxpayers that are supposed to increase consumer spending and boost the economy. Seems the only thing they may boost are those same American taxpayers.
Over fifteen million taxpayers may have to pay back some of that tax credit. Are you one of them?
An IG has reported the problem. The IRS disagrees with parts of the report. Yet the cause of the problem within the wonderful tax system may not be changed and the whole thing may happen again in 2010. And if you read the entire article from WSJ linked in this post you may react like most do when reviewing discussions on the topic of taxes. The information raises more questions than answers.
You might enjoy a little personal anecdote related to this story. Several months after filing my 2008 return the refund came in the mail. The return was filed on the deadline and the refund arrived sometime in June. There was a letter that came separately and this taxpayer prepared for bad news. No, the IRS did not tell this taxpayer about errors that would cost fines, penalties and $$ due the Internal Revenue Service. They explained they had taken the liberty of adding more to the refund in the form of stimulus money.
Red flags went up. First thought was what will this cost me on next year’s return. But alas, the fine folks at the IRS offered the option of not accepting the additional refund money. Not being one to kick a gift horse in the mouth and while concerned about a subsequent shortfall and not liking government stimulus anything I held on to the check. Maybe if one waits long enough the decision on whether to accept or not will be determined by a news report explaining why not to take the porkulus money.
After waiting until last month I reluctantly deposited the check. Most of the refund was not about the stimulus funds. Maybe I can leave the porkulus part in some sort of interest bearing account or investment vehicle. It may take the sting out of any shortfall later. And if I owe nothing because of it in a future return it could stay aa an investment to help later generations payback all the money government is wasting right now. You know, those billions in bailouts, porkulus and reform legislation we cannot afford. Like the $300 porkulus check the IRS sent me.
Stanford Matthews
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