Some States Delaying Tax Refunds, Missouri May Speed Them Up
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KSPR News
Story Created:
Mar 13, 2010 at 11:54 PM CDT
Story Updated:
Mar 13, 2010 at 11:54 PM CDT
The deadline for filing your income tax return is a little over a month away. But for some early-birds who hoped to have their refunds by now, the check may not be in the mail.
At least five states -- Alabama, Hawaii, Kansas, New York and North Carolina -- are considering withholding tax refunds for weeks -- even months -- to help keep their coffers full. And it's possible more states may follow suit.
"The fact that some states are even considering delaying tax refunds to the citizens tells you how bad the fiscal situation is," said Scott Pattison, president of the National Association of State Budget Officers.
But New York State Assemblyman Timothy Gordon said, "I think it's outrageous because what if the people just decided they weren't going to send in their tax returns this year? Well, that's not part of the deal; they can't do that."
Last year California and Georgia had to withhold refunds for five months after a brutal fiscal year. This year, they say they'll get their refunds out on time.
But residents of some other states may not be as lucky. Most states don't have any restrictions as to when they have to pay back tax refunds.
Missouri residents, however, could get their state tax refunds earlier, thanks to a bill the Missouri House passed March 2nd.
Under current state law, tax refunds can be delayed for up to 120 days before the state is required to pay interest.
The House legislation would limit that time to just 45 days. And the 45-day period would take effect as soon as the new rules become law.
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