Friday, October 18, 2013

The Federal Services Disruption Rebate

As a young boy I delivered newspapers to the daily subscribers in my neighborhood.  I quickly learned that if I failed to deliver the paper on any given day, that my customers would deduct the day’s cost from their weekly remittance.

Likewise, Americans who subscribe to a TV delivery service, be it cable, satellite or FIOS understand that when their service is disrupted for any significant portion of time, that they deduct a pro-rated portion of the fee from their monthly bill to reflect the term of the outage.

So it is with our federal government.  They are nothing if not fair, understanding, forgiving and customer friendly.  Therefore, the government’s revenue collection arm, the Internal Revenue Service will soon be making available Form 666 – FU , the Federal Services Disruption Reimbursement Form.

Bloggers such as myself received an advance draft copy of this form in order to help publicize this tax saving opportunity to our readers.

Long story short – Uncle Sam wants to make good the loss of service that its valued customers (i.e. federal taxpayers) suffered during the recent 16 day government shutdown.

The math is simple and straight forward.  You just:

1.      Take your total 2013 tax liability as reported on your 1040 Form
2.      Divide the above by 365 to determine your daily liability
3.      Multiply Line 2 by .17 (or 17%) to reflect the portion of government services lost each day
4.      Multiply Line 3 by 16 to reflect the total days of the shutdown to determine the rebate that is due to you.

An example follows.  In this hypothetical case, Mr. Ira B Sheeple owed $10,000 in Federal Income Taxes.  That computes to $27 per day.  However, Mr. Sheeple was deprived of 17% of the daily federal services that he was accustomed to receiving – this comes to $4.66 per day.  He was deprived of said services for a total of 17 days, which means that he is eligible for a $74.52 rebate on his 2013 taxes.



There is one catch however; the IRS will not be mailing these forms out to all taxpayers.  To receive one you must call your local IRS office and request a copy Form 666 – FU.  If the IRS clerk with whom you  speak with feigns ignorance, I suggest that you call your elected federal representatives as well as the White House and insist on receiving a copy.  I further recommend that you send a copy the attached example to help expedite the process.



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