Refund Checks Will Tax IRS Computers

First Gov. Gray Davis came up with the brilliant plan to refund car tax credits at a cost that almost equaled the amounts to be refunded. Now Congress has emulated the governor, while California realized its mistake and terminated the program.

I am surprised that no one has addressed the issue of how much it is going to cost and how the IRS can possibly develop a software package as complex as the one needed to handle the simplicity (sarcasm intended) of the tax refund program and start writing checks by July 23. The IRS’ history in developing new computer software and systems is a disaster.

The program must access every 2000 return and extract specific information as to taxable income, the amount of the tax and the credits allowed, calculate the refund check, print the check and then forward the information to the files for the 2001 returns and track the information to the final 2001 return filed.

They will have to be able to take the returns of people who are single in 2000 and married in 2001 and bring the refund checks together to one file. Conversely they will have to deal with people who were married in 2000, but single or widowed in 2001. If I tried hard I could probably think up 1,000 or more other problems.

The administrative cost of issuing a $300 check will most likely be $300 (if we are lucky). Why didn’t they just make a gift of the $55 million and be done with it?

Harold L. Katz CPA

Los Angeles

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Congratulations to the Bush-Cheney-oil companies cartel for grabbing the tax surpluses and getting the American public to buy into it. If I drive 12,000 miles a year at 20 miles per gallon, that’s 600 gallons of gas. With the gas prices jacked up 50 cents a gallon, my increased gasoline cost is $300 per year, the same as the tax “rebate.” Since I’m married and my wife also has a car, she socks another $300 into the oil company coffers. When people are interviewed about what they are going to do with their tax rebate, the real answer is, “Pass it on to the oil companies.”

Tony Provost

Orange