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Review of the GW Bush 2007 Tax Rebate

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By Patty Inglish, MS


Rebates Are Not Automatic

The George W. Bush Administration's Tax Rebate on 2007 US Federal Income Taxes provides an additional source of finance to United States Taxpayers. However, it will not be mailed automatically.

Thousands of US taxpayers have awaited the long-promised tax rebate of $300, $600, $1200 or even larger that was promised to them by President George W. Bush in late 2007 and early 2008.

Television commercials about this rebate are presented with a voiceover from a respected actor that has played an FBI agent on Numb3rs and a skilled doctor on Northern Exposure. His voice and the image it brings to the mind of viewers leads these taxpayers and others to trust the message.


Rebate Receivers Must Have Had a Paycheck and Filed Taxes

However, some taxpayers still do not understand that they must actually file a US Income Tax return for 2007 and have earned income for 2007 through a PAYCHECK, not via a Form 1099 or other contractor pay schedule, not though bartering, and not through self-employment; unless they write themselves a legal paycheck with all the legally required deductions shown, made, and paid to the government (check your own US State for the legal requirements).

Individuals whose ONLY income for 2007 is interest/dividends on savings and investments, Social Security and other retirement benefits, Workers Compensation, SSI, SSDI, and other types of disability benefits, public assistance ("welfare") cash payments, and similar payments and income are not eligible for the tax rebate. If they are allowed to work to a certain limit and still receive benefits, then if they received a paycheck in 2007, they can have the rebate. Senior Citizens still working can receive the rebate regardless of retirement income.


Identity Theft and False IDs Will Not Work

In addition, individuals working under false credentials, such as stolen or faked Social Security Numbers or other faked taxpayer IDs will not benefit from the GW Bush Administration 2007 Tax Rebate, because they will not file taxes. However, if they begin to file taxes in 2007, they will likely be caught in the crime(s) committed. A correct address must be presented in order to receive a tax rebate check. it is unclear whether that address can be a post office box, or must be an actual residential street address.

If an individual files a Federal Income Tax form using someone else's Social Security Number and the actual owner of that number also files, then both may be investigated when the discrepancy of two tax returns with the same SS Number reveals itself..

All records of paychecks and contractors' paymnents paid under a Social Security Number are available in a computer database, filed under the Social Security Number, through the Social Security Adminstration. This information is available to law enforcement agencies, departments of Jobs and Family Services, Child Support Enforcement agencies, and other agencies in each US State.


The Underground Economy is Not Eligible

Individuals that work in the US underground economy are not eligible for the GW Bush rebate. These individuals perform work for cash payments that may not be reported to the IRS.

Such work may include labor which requires board certification and a license, such as certain beauty salon services; but, the worker cannot pass the licensing exam or cannot afford the schooling and the cost of the board exam and the additional yearly license fee. However, practicing some beauty services and some other personal services without a license is illegal, depending on the state and federal regulations that apply..

Practicing medicine or mental health therapy is a crime in many states as well. For instance, in Ohio, a practitioner must be either licensed and certified to perform hypnosis, or must be a Registered Nurse or higher (BSN, MSN, PhD in Nursing), a Nurse Practitioner, LSW or MSW or higher in social work, a professional possessing a Masters Degree or higher in Psychology, Counseling, Public Health, or Preventive Medicine, or have one of the few other designations allowed under Ohio law under the Ohio Board of Medicine.

However, there are some individuals that professionally attend alternative health exhibitions in Ohio, perform hypnosis and/or massage without training, education, or a license, pocket a cash-only fee without providing a receipt, and do not report the income to the IRS. Unfortuately, they are guilty of 1) failing to report income to state, local and Federal governments and 2) practicing medicine without a license in Ohio. Thus, a number of crimes are committed in these instances and some visitors to these exhibitions have been seriously injured, resulting in yet another crime and unfortunate occurrence.

Note: Large hypnosis seminars provided short-term by professionals from out-of-state are labeled and advertised as "For entertainment Purposes Only" and receive a stated ot unstated type of legal waiver, thus being allowed to perform.


Cards On the Table and Ducks in a Row

The GW Bush Tax Rebate is also a method for encouraging people to file taxes for 2007 if they have not been filing taxes in previous years. The promise of a rebate will actually increase the Bush Administration Tax Base and provide additional income to finance the Administration's activities - some say it will go towards the War in Iraq.

In addition, taxpayers that have been avoiding taxes in past years, but begin to file for 2007 may risk penalties and fines for back/unfiled taxes. The IRS will find them in 2008 under the promise of the rebate. The rebate may not be issued to them, but applied against back taxes, penalties and fines, if any; and, the new taxpayer will likely be given an opportunity to work out a payment arrangement with the US Federal Government for the balance of the taxes and penalties owed.

People that owe back 1) Child Support, 2) Disability or Public Assistance Overpayments, Spousal Support, some Law Suit losses, etc. and 3) some Educational Loans will also not likely see a 2007 or any other Tax Rebates. The rebates will be applied against the back monies owed. These people, once found by the IRS, can face prosecution and even jail time in some instances the first two categories, and pursuit for the payment of certain educational loans, including wage garnishment.

Wise advice to those seeking any tax rebates in any year is to be honest and ask the Federal Government for help if they have not been paying their taxes. If they are illegal immigrants, they should come forward and ask for help in becoming documented or at least recognized guest workers.

People in jail do not make enough money to pay off back taxes in their lifetimes and given the tightening of the US legal system with the Patriot Act and increased technological surveillance, the underground economy will surely come to the surface faster than they expected. Good advice is to come forward and to ask for help before facing irrevocable legal consequences.

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JarrodHaze profile image

JarrodHaze  says:
2 years ago

Unfortunately, as I wasn't working last year, I don't qualify. Or maybe it's fortunate cuz I'm not contributing to the $178 billion deficit in our budget next year? :) Anyway, hopefully we'll get to a situation where government spending becomes more efficient, wages increase with costs of living, and people understand the value of investing early and compound interest! Then we won't all be so reliant on our tax rebates. :) You think Bush was tryin' to buy us off?

Either way, another Thumbs Up for heping people de-mystify the tax filing process!

Patty Inglish, MS profile image

Patty Inglish, MS  says:
2 years ago

I hope it's not a scheme that was done in a growing neighboring town near ours --- A new mayor put out notices to all the businesses in the area (large, small, and cottage industries) that asked for suggestions of ways the city government could help businesses prosper. When the return replies were compiled, most of the businesses were sent a large city tax bill; the notices had in part been an attempt to verify if businesses were still "in business." I don't know all the details, but some of the businesses closed down.

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