New IRS Campaign Can Help Cities Bring Unclaimed Economic Stimulus Payments into Local Communities
by Heidi Goldberg
The Internal Revenue Service (IRS) announced a new summer campaign last week to reach retirees and disabled veterans who qualify for the federal government’s 2008 economic stimulus payment (ESP), but have not filed tax returns in order to claim the payment. This campaign can help city leaders bring needed federal dollars into their communities by reaching out to residents who have not yet claimed their payments.
So far, the IRS has issued 76.5 million payments worth $63.8 billion based on the 2007 tax returns processed, and expects to issue 124 million payments to Americans by the year’s end. However, new statistics released by the IRS indicate that at least 5.2 million individuals have not yet claimed the ESP. These eligible individuals are missing out on payments of up to $600 ($1,200 for married couples filing joint returns), plus $300 for eligible children younger than 17.
A special stimulus category includes recipients of certain benefits from Social Security and Veterans Affairs who are not normally required to file a tax return. However, these individuals must file a tax return before October 15 of this year to receive their economic stimulus payments.
What Cities Can Do
The IRS can help city leaders identify residents who have not claimed payments and develop targeted outreach strategies to assist these residents in filing tax returns. The new IRS data can help local officials identify the number of individuals in a state, county, city or even a Zip code who have not yet claimed their payments.
City officials can contact their regional IRS offices where IRS SPEC (Stakeholder, Partnerships, Education and Communication) representatives can analyze the data for their cities to find out the number of residents receiving Social Security or Veterans Affairs benefits who have not claimed payments and where they are located.
Municipal leaders can also partner with community organizations that serve these individuals, such as senior housing, Veterans Affairs hospitals and assisted living facilities. While not included in the IRS data, cities may also want to reach out to other low-income residents who may not typically file tax returns, such as recipients of Temporary Assistance for Needy Families. Claiming the stimulus payment should have no impact on other federal benefits currently being received, nor is the stimulus payment taxable.
Later this summer, the IRS will send a special letter to all recipients of Social Security or Veterans Affairs benefits who have not yet claimed their stimulus payments that explains payment eligibility and how to claim it. The letter will include a sample tax form and an actual tax form that residents can complete and mail to the IRS. This outreach effort presents city agencies and community groups with an opportunity to follow up with residents by helping them file their tax returns, especially since some of these individuals may not have filed returns in many years.
The IRS will continue to work with national organizations such as NLC, AARP and the Center on Budget and Policy Priorities to reach out to potential ESP recipients throughout the summer.
Details: For more information about the ESP and how cities can help residents claim the payment, contact Heidi Goldberg at goldberg@nlc.org or (202) 626-3069 or Sarah Bainton Kahn at bainton@nlc.org or (202) 626-3044.
For information and ideas about how to partner with community groups in a city to reach out to retirees and disabled veterans, contact John Wancheck at the Center on Budget and Policy Priorities at wancheck@cbpp.org or (202) 408-1080.
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