Thread: BUDGET CRISES PUT TAX REFUND CHECKS ON HOLD

BUDGET CRISES PUT TAX REFUND CHECKS ON HOLD

Posted: Friday, February 27 2009 at 05:00 am CT
by Bob Sullivan
535 COMMENTS

You've probably heard before that if you're getting a big, fat tax refund check, you're doing something wrong. Now there’s a new reason to fine-tune those payroll withholding elections. The economic meltdown is hitting statehouses around the country so hard that some are holding their residents’ tax refund checks hostage.

Budget crises in Kansas and California have already forced those states to halt tax refund processing. In California, there's even been talk of sending out government IOUs instead of money.

In New York, state officials insist they have enough money set aside to pay tax refunds, but tax preparers in the state say refund checks are taking an awfully long time to arrive. And around the country, with 46 states facing budget crises, according to the Center on Budget and Policy Priorities, some taxpayers worry that their refund checks might be withheld as well.

When Camarillo, Calif., resident Christine Hughes logs in to check on the status of her refund, all she sees is this disheartening message:

“Your refund cannot be issued at this time. Due to the state’s persistent cash flow problems, the State Controller has directed (this agency) to stop sending refund requests to the State Controller’s office for processing.â€

Just wonder if the states will be paying interest on those payments they are not able to return?

"If they can't pay the taxpayers back what we are owed, we should not be obligated to give them any more of our hard earned money to mismanage," she said.

Exactly, not to mention there are totally different rules in each state where some are paying and others are not. Atleast the federal is the same for all. They rip us blind here, while others let you keep your money. My taxes constantly go up and for the life of me, it seems to be for nothing I benefit from.

Just wonder if the states will be paying interest on those payments they are not able to return?

One can dream. Probably when they raise taxes next year to cover it. LOL

How about we all say this, "your income tax request has been received and processed but unfortunately you can receive a payment at this time."

Originally Posted by bigtex

How about we all say this, "your income tax request has been received and processed but unfortunately you won' be receiving my payment at this time."

Man I'm glad I live in Texas. I already got my check and I am saving every penny!