It’s Your Money They’re Holding

According to USA Today, some “states may hold onto tax refunds for months.”

Residents eager to get their state tax refunds may have a long wait this year: The recession has tied up cash and caused officials in half a dozen states to consider freezing refunds, in one case for as long as five months. … Delaying refund checks isn’t unprecedented, [executive director of the National Association of State Budget Officers Scott] Pattison said, but it is something virtually no politician wants to do, because taxpayers are owed the money and in most cases want it fast. Delays in paying refunds and other state bills can trigger interest on those overdue payments, depending on state laws, he said. California’s massive budget shortfall of more than $20 billion last year prompted it not only to delay tax refunds but to issue billions of dollars in IOUs to vendors and others who were owed money. …

I remembered this happening last year and figured that this year would probably be worse – So I’ve already long since filed my returns and gotten both my state and federal refunds this year, while the getting was good. If you haven’t filed yours yet, do it now. (The IRS has a web page where you can track the status of your refund; some or all states do as well.)

3 Responses to “It’s Your Money They’re Holding”

  1. pirahna Says:

    And soon will come the point when they don’t give it back at all.

  2. pirahna Says:

    We suggest everyone fight bck. Set up your withholding to keep the maximum. Estimate what you will owe and put it in a savings account. Even the pittance the banks will give is better then the government keeping it…at this rate, maybe NEVER giving it back. WTF California? IOUs????
    Better to pay in April than to never get it back. Why should the government get to use all YOUR money interest free for a year?

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