Posted on 03/18/2010 4:09:50 AM PDT by rabscuttle385
(CBS) Some states suffering severe, recession-induced budget problems are holding off on paying tax refunds to people and businesses.
North Carolina, Hawaii and Alabama are already doing it and others, such as New York and Kansas, might.
The states are holding or may hold onto your money as long as they can because they need to use it for other purposes, tax expert and attorney Barbara Weltman told "Early Show" Saturday Edition" co-anchor Chris Wragge.
You'll eventually get your refund, but when depends on where you live, she explained. Laws differ from state-to-state, but most states have to issue a check (or direct deposit) within 45 days from April 15 or the date the return was filed, whichever is later. So, if you filed your return in February, the refund isn't due until 45 days after April 15. Some states have even longer — up to 90 days — to issue the refunds without having to pay interest.
(Excerpt) Read more at cbsnews.com ...
fyi
Mrs. GBC (in Alabama) told me about this one a couple of nights ago. Not surprised.
Next up Federal Refunds will be held up as ransom for passing Healthcare and or Cap and Tax.
New York is delaying paying refunds.
....does this mean next year we can delay paying state taxes for the same amount of time this years refund was delayed?
Is there an Obama congressman in AL expected to become the next governor? I heard that months ago.
The states only make their problems worse by doing this. When people see that they’re not getting their money back, which is effectively a tax increase, then they’ll pay more attention to how much is taken through withholding. Some people are very particular about it already, but I never was. I took the roughly right route, err on the side of not having to pay in April. That is changing now and I will probably never have the same attitdue toward withholding ever again.
This is a short term and dumb solution by the states involved. Taxpayers will change their W-4s to show an increased number of deductions so as to reduce the amount of withholding and thus lower state revenue.
Guam has been doing the tax refund slowdown trick for years and local residents have compensated. They manage their deductions so they they only owe a slight amount of income tax each year. They can’t plan on refunds.
Well, we know that the Fed recently announced again that it will keep the rate low. Western governments are running on debt. That’s why. They’re borrowing money every way that they can. They’re putting rougher times off (for government employees) all that they can. It’s as simple as that.
I’ve been doing that for years. I’m not giving them a interest free loan! That’s essentially what the refund is - repayment of the loan you gave them during the year, and, you were so nice you didn’t even charge interest for it. Anyone using the tax refund as a intra-year savings plan is just plain not managing their finances well.
This has got to be one of their more stupid ideas. Most people will just change their withholdings so there won’t be any extra money for the states. In about six months the states will be wondering why they’re still short.
I’ll bet they’re not holding up welfare payments!
I haven’t thought about that but it wouldn’t surprise me if the marxists try it.
Never. If they did, the big cities would collapse in fire and riots immediately.
Why make the government a interest free short term loan if they are not going to repay it?
North Carolina did this last year as well... and it didn’t help then either.
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