Rebate letters to cost 42 million dollars

3/8/2008 WASHINGTON The Internal Revenue Service is spending the cash on letters to 130 million households who filed returns for the 2006 tax year. The notices inform them of the $600 tax rebates for individuals and $1,200 for married couples.

The director of the president's National Economic Council says the letters are being sent to help prevent taxpayer confusion. However, congressional Democrats call the letters "self-congratulatory" and say there are better ways to use the money.

The tax rebate checks are to go out starting in May.