Southwest Ohio Congressman seeks written confirmation from IRS
WASHINGTON, D.C. - Congressman Michael Turner (OH-03) received word from staff of the Internal Revenue Service (IRS) that Delphi Employees that accepted lump-sum and buyout payments will still be eligible to receive the tax rebates in the recently enacted economic stimulus package. Rep. Turner met with IRS officials after hearing concerns from former Delphi employees who received one-time buyout payments which may have caused their 2007 income to exceed the income cap under the economic stimulus plan. IRS staff members verified that Delphi employees and others who did not qualify for a stimulus payment based on the 2007 taxes may qualify for a stimulus payment based on 2008 taxes after their taxes are filed in 2009. Also, those accepting buyouts in 2008 will not be penalized and will be eligible for stimulus package rebates. Seeking written confirmation of Delphi Employees’ eligibility for the rebates, Rep. Turner today sent the following letter to (IRS) Commissioner Mark Everson:
Dear Commissioner Everson,
Recently, my office was contacted by former Delphi Corporation employees who accepted a buyout and are concerned that they may not be eligible to receive tax rebates under Title I of HR 5140. They are concerned that, as a result of the buyout their 2007 income is higher than the income cap signed into law by the President.
In 2006 and 2007, Department of Labor Secretary Chao certified that former Delphi employees who accepted buyouts would be considered “adversely affected workers.” As a result, these former Delphi employees would be eligible to receive TAA or ATAA benefits. It is important to note that while these “adversely affected workers” may have incomes that exceed the income cap for a rebate, this is a result of a one-time buyout payment, and is not representative of their base income.
Your staff has indicated, however, that those whose incomes may be temporarily higher than the income cap for tax year 2007, might be eligible for the rebate when they file their 2008 tax returns in calendar year 2009. Additionally, those who receive the rebate in 2008, and accept a buyout in that year, will not be penalized on their 2008 tax returns if their income is over the qualifying limit at that time.
I am requesting confirmation that these “adversely affected workers” who accepted buyouts will in fact be eligible for their rebate when they file their 2008 tax return in calendar year 2009. Finally, I request that the Internal Revenue Service publish instructions that will help these workers access this rebate when it becomes available to them.
Michael R. Turner
Member of Congress