Cash-Strapped States Delay Paying Income-Tax Refunds
Posted By thestatedtruth.com on March 7, 2010
Cash-Strapped States Delay Paying Income-Tax Refunds
Postd March 7, 2010
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.
“States typically do this when they are tight and they don’t have a budget in place,” said Karla Dennis, CEO of Cohesive, a nationwide tax preparation firm. Things are dire at many states: forty-one states are expected to have mid-year budget gaps totaling $37.7 billion, according to the Center on Budget and Policy Priorities.
Delaying the refund, Dennis says, “gives the state funds to work with in the interim to fill a gap in their revenues.”
Comments