Opening Statement of Hon. Amo Houghton, M.C., New York,
and Chairman, Subcommittee on Oversight

Testimony Before the Subcommittee on Oversight
of the House Committee on Ways and Means

Hearing Series on Deceptive Mailing Concerning Tax Refunds

July 19, 2001

Good afternoon. Today’s hearing focuses on a deceptive mailing that is designed to take advantage of unsuspecting taxpayers. These mailings attempt to deceive taxpayers and prey upon the good will of law-abiding citizens, often by misrepresenting a government agency, such as the IRS, as we will see at this hearing.

Recent reports have surfaced about a deceptive mailing associated with the tax cut rebate checks soon to be issued by the Treasury Department. The mailing, in a form of a double-sided postcard, displayed in front of me, has been sent to taxpayers in at least six states from an entity called the Revenue Resource Center.

Now, at first glance, this looks like an official Internal Revenue Service document, with terms like "Form 16-D – Taxpayer Refund Relief Information Worksheet," "Bureaucratic Agency," "Taxpayer Activity Report," and a quote from President Bush citing the need for tax relief.

The card asks taxpayers to send in $14.95 for a fact sheet about their upcoming Treasury Department refund check. And, I think the card uses a very suspect tactic when it says the recipient should return the card "to assure proper delivery." Some people might think this means that they must "send in $14.95 to assure proper delivery of their refund check."

Today, with the assistance of the Internal Revenue Service, the U.S. Postal Service, and through the work of state consumer protection agencies, like the one headed by Ohio Attorney General Betty Montgomery – we will expose this fraud.

We will hear from two witnesses to answers some important questions and help us get to the bottom of this deceptive mailing.

Through this hearing, I hope the public will learn to be on guard against deceptive mailings.

I am pleased to yield to our ranking Democrat, Mr. Coyne.