Wednesday, June 16, 2010

Late State Tax Refunds

"Procrastination is no longer just for the taxpayers who wait until the last moment to file their tax returns. Thanks to the economic downturn, at least a half-dozen cash-poor states are now delaying their tax refund checks. ... 'We're sorry for the inconvenience. We understand that people are relying on the money for credit card bills, etc., etc., but we'll get them out as fast as we can,' said Paul L. Dion, the chief of Rhode Island's Office of Revenue Analysis, explaining that 34,423 refund checks were being held up as the state ensures it has enough cash on hand to pay its debts on time. 'For the record, mine is on hold as well.' ... Budget cuts left Iowa's Department of Revenue without the money to hire the 50 temporary workers it ususally adds around tax time. So some refund checks were slowed while nearly everyone in the department--from auditors and revenue agents to top agency officials--was directed to pitch in by opening up envelopes and processing tax returns. ... It is yet another change brought about by the longest recession since the Great Depression. Many state governments are as overextended as their residents, and find themselves balancing and rebalancing their checkbooks each week to make sure they have enough money to pay their bills. Of course, holding on to the money that many taxpayers count on is usually a last resort: several states were greeted with angry outcries when they delayed sending out refund checks last year; including Alabama, California and Georgia, made sure to pay out their refunds faster this year", Michael Cooper at the NYT, 2 June 2010, link:

Will the involved states let you pay taxes late in sympathy?

1 comment:

Anonymous said...

Here is Pres-Obama asking Congress for another $50 billion for the states... not because we're in recession or anything... the markets are on a tear and corporate profits are breathtaking.

It's just errrr...

So the $20 billion from BP is kind of a mini stimulus... except it can't pay public pension requirements or teacher salaries.

Imagine what course this nation this would be on Pres-Obama just took a deep breath and told the country exactly the state of affairs?

Imagine the deep national anguish, the realization of the rich resources here and a new found willingness to bear the weight of American renewal.

No... never gonna happen... same banksters... same military industrial complex... same old same old...

States refunding taxes late? Soon to be thought of as a quality problem.