Combs Apologizes for Rebate Fiasco

We All Deserve Answers About the Appliance Rebate Program

By Susan Combs

It is not acceptable that thousands of Texans spent hours trying to reserve appliance rebates on Wednesday, April 7, only to be met with dropped calls and an unavailable online reservation system. It is not acceptable to me or the many Comptroller employees who worked diligently to ensure mechanisms were in place to accommodate the extremely high demand we expected. And it certainly isn’t acceptable to the citizens of our state. We all deserve real answers.

With high-value rebates, a large population and limited funds, we knew not everyone interested in the program would be able to reserve rebates. We closely watched similar rebate programs in other states. Within days of seeing the experiences of Iowa and Minnesota, whose systems were overloaded, we were on the phone requiring increased safeguards from Helgeson Enterprises, the company contracted through a competitive bid process to manage our rebate fulfillment. We accurately projected the estimated traffic we thought we would receive in the first few hours. We looked closely at the contractor’s system bandwidth and infrastructure. We provided clear steps they needed to take at a minimum to prepare for Texas.

On our end, we immediately recognized the need to create our own Web front door for the contractor’s online system to provide program information and updates. We took the steps needed to handle millions of hits concurrently to our Texas Powerful Smart site atwww.TexasPowerfulSmart.org. We did it right, and our Web front door handled about 40 million hits in less than 12 hours without fail. This allowed us to provide real-time updates about the contractor’s system and direct people to our e-mail subscription service and Twitter feed for updates to keep them informed of rebates remaining and other important details.

Prior to April 7, at our request, the contractor did a test run of their system and stated that the online reservation system should be able to handle 25,000 users at a time. The wait time for those trying to access the system online was estimated by the contractor at three minutes. Dropped calls were never acceptable to us, and no one should have been kicked out in the middle of an online reservation.

However, problems with their online reservation system began immediately. With their online system unavailable, the phones were completely overloaded. Our agency took thousands of calls as well. Through a conference call on early Wednesday morning, we demanded updates from our contractor on the system status so we could pass along this information via our site and other communication channels.

By mid-morning, the contractor reported their system may have been affected by a Web attack, which consumed about 75 percent of their capacity.

The online reservation system was brought back online at 12:15 p.m., and reservations started flooding in. Just after 2 p.m., all rebate reservations were taken, and the waitlist was opened. It filled by 6 p.m. However, many still reported problems with the system.

To the thousands of frustrated Texans who experienced problems: we are as mad as you are. We are gathering information to identify the full scope of the problem. We have received feedback from more than 15,000 of you, and we are taking action.

Before the end of the day on Wednesday, we sent a letter to Thomas Helgeson, president of Helgeson Enterprises, expressing our dissatisfaction with the company’s performance and requesting specific sets of data that will help us determine whether the company is meeting its contractual obligations for items such as Web site uptime and answer time for phone calls. We also requested a specific description of the steps Helgeson is taking to avoid additional problems with rebate fulfillment.

Not one dollar has been paid to Helgeson. Payment is based on the number of rebate claims processed. This means no payment to Helgeson will be made until Helgeson begins to issue rebate checks to Texans, and we have a team actively monitoring this entire process.


Don’t Forget the Extra Sales Tax!

Generally, taxpayers may add to the table amount any sales taxes paid on:
  • A motor vehicle, but only up to the amount of tax paid at the general sales tax rate;
  • and an aircraft, boat, home (including mobile or prefabricated), or substantial addition to or major renovation of a home, if the tax rate is the same as the general sales tax rate;
  • sales tax paid on materials purchased to build a home or substantial addition or to perform a major renovation.

Motor vehicles include cars, motorcycles, motor homes recreational vehicles, sport utility vehicles, trucks, vans and off-road vehicles. Taxpayers may also include any state and local general sales taxes paid for leased motor vehicles.

Here’s a calculator:  Sales Tax Deduction Calculator.

Reservation Launch Time for Texas Appliance Rebate Program

The Texas Trade Up Appliance Rebate Program reservations officially begin Monday, April 5, at 7 a.m. CT, when consumers can receive rebate forms for select ENERGY STAR® appliances by visiting the online reservation system at www.TexasPowerfulSmart.org or calling (877) 780-3039. Texans can use the rebates to buy energy efficient appliances in eight different appliance categories and replace the same type of old, functional appliance.

Economic Recovery Payment

From the IRS website:

A one-time payment of $250 was  made in 2009 to:
  • Retirees, disabled individuals and Supplemental Security Income (SSI) recipients receiving benefits from the Social Security Administration.
  • Disabled veterans receiving benefits from the U.S. Department of Veterans Affairs.
  • Railroad Retirement beneficiaries.
The IRS did not make this payment, unlike last year’s economic stimulus program.   The economic recovery payment will be a reduction to any Making Work Pay credit for which the recipient qualifies. The Making Work Pay credit will be claimed on the recipient’s 2009 tax return filed in 2010. For more information regarding the economic recovery payment and the Making Work Pay credit see these questions and answers.

Taxpayers who can’t recall whether they received the payment may may call the automated telephone service at 1-866-234-2942 and select Option 1. When you call, you will need your social security number, birthdate, and ZIP code available.

Starting March 23, 2010, they may use the Did I Receive a 2009 Economic Recovery Payment? online tool to verify whether they received the payment. Taxpayers may also contact their respective agencies for confirmation before completing and filing their 2009 tax returns in 2010.

Tax Center to Assist Unemployed Taxpayers

The IRS has set up a web page to give additional assistance to unemployed taxpayers.  There are references to publications that may prove helpful to the unemployed.  IRS also points unemployed taxpayers toward the possibility of starting a new business.  Here’s a video that talks about what to do if you’re unable to pay (IRS uses YouTube!)

The Great Recession

The jobless recovery was discussed on the March 5, 2010, broadcast of The Takeaway.   Lakshan Achuthan, managing director of Economic Cycle Research Institute , a market analysis company,   tells a tale of two economic Americas. Contrary to popular belief, the current recession has not been all that bad for many Americans. Unfortunately, the other 40 percent of unemployed fall into what Lakshman calls the “long term unemployed;” and he adds that their plight may not be over any time soon.

Achuthan comments that the Jobs Package which offers a payroll tax reduction incentive to employers will not address the problem of the long term unemployed as employers will only accelerate hiring that is already on the table.


Children’s Health Insurance (CHIPRA)

There are new notice and disclosure requirements associated with CHIPRA.   Employers must notify all employees of their potential eligibility for the subsidies under Medicaid or CHIP.  Model notices have been developed by the Department of Labor and the Department of Health and Human Services.  Employers are not required to provide these  notices until the first plan year after the model notices are issued by he first day of the plan year after February 4, 2010 or  by May 1, 2010, whichever is later.
Find the model notice here.

Help! It’s time for my tax appointment!

Here’s a checklist that will help you organize the documents that are necessary for your tax preparer to assist you in the preparation of a complete and accurate return.

  • Estimated tax payments
  • Wages, salaries, and other employee compensation – Forms W-2
  • Pension and annuity income – Forms 1099R
  • Social Security benefits received – Forms SSA
  • Interest income, statements of tax exempt interest earned, and
  • seller-financed mortgages – Forms 1099-INT
  • Dividend income and statements of tax exempt dividend earned – Forms 1099-DIV
  • Miscellaneous income – Forms 1099 or other forms
  • Stock brokerage statements
  • Income from business – Attach a schedule of income and expense for each business
  • Details of home office expenses
  • Capital gains and losses – Forms 1099-B and 1099-S
  • Sale/purchase/refinance of personal residence; home equity loans
  • Job-related moving expenses
  • Rental income – Provide a separate schedule for each property
  • Income from partnerships, estates, trusts, or S corporations – Forms K-1
  • Contributions to retirement plans including IRA’s and ROTH IRA’s
  • Alimony paid/received
  • Itemized deductions including:
  • Medical and dental expenses
  • Taxes (including Sales Tax!)
  • Interest – Mortgage, student loan, other
  • Contributions, including expenses incurred in performing volunteer work, auto mileage
  • Casualty and theft losses
  • Investment-related expenses
  • Employee business expenses
  • Business mileage and travel
  • Child care expenses
  • Education Expenses
  • Please note any changes in dependents or filing status.

ps, a nice bottle of wine is always appropriate.