The Office of Legislative
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FMS Gears Up for Delivery of
2003 Child Tax Credit Advance Payments

On May 28, 2003, President George W. Bush signed into law the Jobs and Growth Tax Relief Reconciliation Act of 2003 providing a tax advance payment to about 26 million United States taxpayers. As the federal agency that disburses 85 percent of federal government payments, Treasury's Financial Management Service (FMS) will begin making these payments on July 25, 2003.

On July 16, the Internal Revenue Service will send the first certified payment files to FMS and the first checks will be mailed on July 25. It will take three weeks to make the 26 million payments, with payment dates scheduled for July 25, Aug. 1, and Aug. 8. FMS will issue the payments from four of its centers, making approximately 9 million payments per week. FMS will continue to make payments to taxpayers who filed for extensions through the end of this calendar year.

"With FMS' success in the summer of 2001 in issuing 86 million tax advance payments totaling $36 billion, this year's tax advance payments should be easily managed within the three-week timeframe with no delays or delivery problems," said FMS Commissioner Richard L. Gregg.

Taxpayers can ensure prompt delivery of their payment by making certain that the U.S. Postal Service has their correct mailing address. Those individuals who have moved since filing 2002 income tax returns need to be certain that a change of address form with the correct forwarding address is on file at their local post office.

Taxpayers should also consider whether they might owe delinquent non-tax debt to a federal agency. If an individual has an outstanding federal delinquent debt such as a student loan, a veteran's health overpayment, or a federal mortgage, or if an individual owes delinquent child support or delinquent state income tax, the advance payment may be reduced to repay the debt.

Note: Questions relating to special considerations, such as death, divorce, injured spouse claims, or delinquent federal tax debt should be directed to the Internal Revenue Service at (800) 829-1040.