Notices about Advance Payment
Checks Hit the Mail

WASHINGTON - About 112 million taxpayers will begin receiving notices in the next several days from the Internal Revenue Service, providing details about the upcoming advance payment checks.

“The notices spell out how much people will get and when their check will arrive,” said IRS Commissioner Charles O. Rossotti. “People won´t need to call the IRS because we´ve made the entire process automatic.”

Taxpayers will receive one of two notices. One notice indicates how much their advance payment will be and when to expect the check. The other notice explains that, while the taxpayer does not qualify for a check now, they may be able to qualify for a credit next year.

The IRS reminds taxpayers to keep a copy of the notice for their records.

Starting the week of July 23, taxpayers will receive checks from the Treasury Department´s Financial Management Service based on the last two digits of the taxpayer´s Social Security number.

The IRS will automatically process these advance payments based on the tax returns filed for 2000. Taxpayers will not have to complete applications, file any extra forms or call the IRS to request their payments.

“We´ve made this process as simple as possible for taxpayers,” Rossotti said. “It´s as easy as opening your mailbox. All taxpayers have to do is cash the check.”

The amount of the checks will vary. For returns filed as Married Filing Jointly or as a Qualifying Widow(er), the checks will be up to $600; for Head of Household, up to $500; for Single or Married Filing Separately, up to $300.

The amount of the checks depends on several factors. The payment will be the lowest of the following amounts:

• Five percent of the taxable income on the 2000 tax return;
• The 2000 tax liability after subtracting most credits (but not the earned income tax credit); or
• The filing status dollar limit: $300 for Single or Married Filing Separately; $500 for Head of Household; $600 for Married Filing Jointly or Qualifying Widow(er).

The purpose of the advance payments is to give people a tax break without having to wait until they file their 2001 tax forms. Some taxpayers that get less than the maximum dollar amount on the upcoming checks may be able to claim a credit when they file their 2001 tax returns. To reduce confusion about the checks, the upcoming notices will spell out the specific dollar amount taxpayers will receive.

Several tips to keep in mind:

• Individuals who have not yet filed a tax return for 2000 will not get a check until the IRS processes their return. They will also receive a letter in advance of the check.
• Taxpayers who have moved should file a change of address form with the U.S. Postal Service to ensure that the notices and checks get to them.
• The IRS emphasizes that taxpayers don’t need to call or do anything else to receive the check.
• For more information, visit the IRS web site at www.irs.gov. The direct link is www.irs.gov/ind_info/apinfo/index.html

Because the Social Security number determines when checks are mailed, taxpayers may receive their checks at different times than their neighbors or other family members. On a joint return, the first number listed will set the mailout time. If the last two digits of your You should receive your check

       Social Security number are:   The week of:
       00 – 09                       July 23
       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

All or part of an advance payment may be applied to back taxes or certain other debts of the taxpayer, such as delinquent child support and education loans. In such a case, the taxpayer will receive a letter explaining this offset.

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