Skip to comments.Cash-Strapped States Delay Paying Income-Tax Refunds
Posted on 03/06/2010 10:35:33 AM PST by cajuncow
This year, more Americans and businesses may be asking: Where's my tax refund?
That's because cash-strapped states such as North Carolina, Alabama and Hawaii have been forced to slow down issuing income tax refunds to individuals and businesses because of a lack of funds in their budget.
Kansas has hinted that a delay might be possible, and processing paper refunds in Iowa has slowed because the state doesn't haven't enough employees to get them processed faster.
Another state, New York, is still considering whether they'll follow the likes of Hawaii and delay refund payments.
(Excerpt) Read more at finance.yahoo.com ...
Should be in “breaking news” sidebar, IMO. Next year at this time, it won’t just be three states. It will be those states, plus the other 54.
Something seems odd that the states and feds extort the money from people then complain about having to make refunds on that which was illegally gotten.
Our system is broken. Pray that November brings a clean crop of congressmen, and that they repeal the 16th amendment, install the Fair Tax, and repeal all these spending bills. This upping the ante on tax to cover their spending has to stop.
re: the state doesn’t haven’t enough employees to get them processed faster
And yet we hear that government employment at the state level is higher than it’s ever been. Government at every level is just about the only one hiring these days, and yet every state complains of not having enough employees to get the work done.
Let a business in one of these three states ask for some more time to get their taxes paid because they are experiencing budget problems and see how far they get.
The state should be just as penalized for failing to return money to a business as the business would be for failing to pay the tax.
Good for the goose and all that sort of thing.
Knew this was coming. Last summer insisted my husband change his withholding to minimums. He was not a happy camper at that time. Now I’m looking like a genius.
Last I checked, Virginia is instructing its taxpayers that paper returns and requests for check refunds may be delayed due to budget cuts. Electronically filed returns and requests for direct deposit refunds, however, are proceeding quite speedily.
‘Kansas has hinted that a delay might be possible, and processing paper refunds in Iowa has slowed’ —————So is it just for paper filers???
You mean there are states that have a state income tax?
Glad I live in Texas.
Interesting variation on the "Cut Fire And Police" Scam.
It took only a month for the refund check on a paper return in Louisiana to arrive.
Glad I live in Texas.
well to pay to maintain infrasturcture schools etc...you either pay income tax or property tax....or tolls...or fines...or whatever.
but here in NY they do it all.
How is this even legal?!? IT IS NOT THEIR MONEY, THUS THE REFUND!
You must rent. I lived in Texas 17 years....my property taxes on my house went from $600 to $1800 to $3600 to $4800 dollars in 8 years in Ft. Worth. I paid $21 for property taxes last year. You can keep Texas and their "no state tax".
News of interest regarding your income tax returns.
First the rob you off your own money and then delay returning your own money to you. I’m tellin ya, we needs a revolution here......
Exactly, I have the minimum withheld and then get back a minimal refund. I used to be so puzzled by (and jealous of! :)) my similarly-paid coworkers who got back large refunds. I finally stopped and thought about it...I’m bringing home far more per month than they are.
Yes, they are letting the government use their money interest-free.
Texas doesn’t have that problem.
Try paying your taxes late and see what breaks loose.
I am from Alabama, and the RSA (Retirement Systems of Alabama) has matching retirement funds for government employee’s. We are one of two states that aren’t in the negative on our retirement funds. Something seems strange here. Are they cooking their numbers, or are they about to go into the negative like California? It’s scary because we are not a rich state.
Most states do it all, from what I’ve experienced. Either way, the state will get the money from you, but filling out the income tax forms can be a pain in the neck!
God Bless Texas ... no state income tax. They can’t refuse to refund that which they have not already extorted.
Try not filing and paying on-time if you owe them... They would probably waste more money coming after you and demanding you pay than you owe.
Both are breaches of contract and should be penalized. It can't be one way for one party and another for another. If that is the way it is, then the system is broken (it is) and anarchy is not far behind.
Because they think it is their money...even hear them refer to tax cuts as an expense as if returning your money to you is a cost to them?
I cant stand filling them out either........soooooooo...I just passed it to my preparer...
Wow. That sounds like the ‘’401k’’ from Heaven alright. You mean your state macthes what goes into their state employees retirement fund? Damn. First of all, you the taxpayer are paying their salaries and your taxes pay the salaries of your elected officials who then take that taxpayers money and ‘’match’’ the fund. It’s ‘’free money’’ for the employees! Here in NJ the pensions are the ticking time-bomb that is someday(and soon) going to bankrupt the whole state. I have never heard a convincing argument for state employees having the need to be unionized.
And bet, if you delayed paying taxes because your spending, some over-paid government bureaucrat would be right there to foreclose and take all you get April 15
Why do I get the feeling that idea would give the state politicians a coronary?
Strait up theft.
I never get a state tax refund but wish dear leftist CA, which is broke, would delay the refunds to all the ‘takers’ here in the state — love to hear their whining -—— of course it’s THEIR voting and policies that put CA in the position in the first place!
One can despise Arnold but even when he has tried to make big cuts he could not do a thing with this far left and insane legislature.
The first theft was paycheck withholding. If we have to have withholding, the government should be required to pay us interest.
Those "in charge" will just use pending tax return funds to fight it.
I missed one of my 1099 receipts in '05 and was informed in '08 and had to pay a sizable interest fee to both the state and the fed's.
It doesn't work for us serfs.
I told all my employees last year to reduce their withholdings to absolute minimums. Even if they withold too little, better to owe the state than the other way around.
Ditto. My Fed. refund is sitting in the bank already.
that was funny.
You must rent. I lived in Texas 17 years....my property taxes on my house went from $600 to $1800 to $3600 to $4800 dollars in 8 years in Ft. Worth.
That is brutal
Ya notice people in Texas are constantly trying to get people to move there?
Then throw in nasty heat and humidity 7 months out of the year...
I'd say trouble likes company
They get you in other ways... How are your property taxes?
We haven’t gotten a refund from the state in YEARS.
As long as we keep people like Bill White out.
Who pays interest indicates who the borrower is and who the lender is.
Proverbs 22:7 - The rich ruleth over the poor, and the borrower [is] servant to the lender.
And there are those who claim this country is not governed by royalty ...
I have noticed in Ca new taxes and surcharges appearing out of nowhere, whith no fanfare about tax increases. For example, I got a City parking ticket in December and 10 dollars was added to it as a state surcharge. Then yesterday I looked at my City utility bill and noticed new utility tax that is designated to go to the CA general fund, I had not seen that before.
They will get their new taxes by hook or crook, secretly with small increases in obscure areas so that people won’t take much notice as they would with a sales or income tax increase. Scoundrels, thieves, corrupt politicans to the core.
Tar, feathers, rope and guillotines, are apparently the only things that are going to put a stop to this.
We need more info from you.
Is this a definded benefit plan or 401k?
If the have no Defined benefit plan and this is a 100% match 401k that is outstanding.
Many think the companies contributions are maxed at the 4 or 6%. IRS law allows them to match up to 100%. Many high compensated employees such as doctors at major hospitals have such plans.
Late paying Big Brother....penalty and interest. Big Brother late paying YOU...”well ain’t that just too fu***** bad!!!” Isn’t it wonderful to live in a formerly free country!
..and rest assured they will have auditors working overtime to search out every possible lien situation, unpaid parking tickets, cheating on car registration tax fees, ‘overpayment’ of unemployment insurance, etc,etc
I ordered online from Victoria Secret for Valentines day. Shipped to CA. I noticed on the total that I paid state taxes on the SHIPPING charge. When I asked them about it they said they were required by CA state law.
SHIPPING and handling is now taxable in CA!!!