Calif Refunds

[S T]

Just received this from ftb.ca.gov

Date: January 16, 2009

Subject: California State Tax Refund Delay Information

Due to the state’s persistent cash and budget problems, the State Controller announced that he will have to delay refunds for 30 days starting February 1, 2009 for Personal Income Tax and Business Entity taxpayers.

We will update our website with FAQs as further information becomes available.

Sandy

[Jesse]

Sandy,
I saw this on the news, they are going to send out "IOU's", basically letters asking people to be patient, you'll receive your money when we have some to give you. I guess what I don't understand is why add the extra expense to generate these letters. It's all over the news, preparers can advise you, it may clog up the phone lines asking where's my refund, but wouldn't it save money to not send out notices informing what most people already are aware of?

[S T]

Not a letter

This was through my FTB subscription service efile news that is distributed to my email. It is also now posted on the FTB website.

Not sure how FTB is going to handle with notifications to the taxpayer.

Sandy

[Jesse]

Not sure how FTB is going to handle with notifications to the taxpayer.

The notification to the taxpayer is what I meant to say will be so costly. On the news they stated taxpayers would receive notification of the delay of the refund instead of the money - it just seems that most taxpayers will be aware of the wait so the State of California could save money by not sending a letter to each taxpayer that files before the funds are available.

Just my thoughts - I'm sure there are others that would disagree.

[S T]

Notifications

I agree, just like Treasury/IRS sending out all of those notifications on the Stimulus Rebate.

Sandy

[taxea]

Just think of all the poor preparers that have to deal with the rath of the clients when they deliver this message. Seems to me the state is thinking they will start paying refunds in Feb when the people that owe start paying their taxes. Doesn't the state realize that taxpayers who own wait until 4/15 to pay? Good luck to all of you. taxea

[Lion]

Ny

NY delayed refunds one year until their new fiscal year began 1 April, or something like that. People that rushed to pull their information together to get their NY refunds (I'm in CT, so commuters are usually over-withheld in NY and owe CT) were not happy.

[OtisMozzetti]

30-day delay

Sandy,
they are going to send out "IOU's",

The wording I have seen is that there will be a 30-day delay on refunds which have not completed processing before Feb. 1.

= = = = = =
On a related front, did everyone notice that California now has a new law obligating the estimated tax requirement to be paid 30%,30%,20%,20% instead of 25%,25%,25%,25%?

[joanmcq]

One of my coworker's clients apparently got an IOU instead of an unemployment check. I did get a message that refunds from returns filed before Jan 23 may get paid, but I wouldn't count on it.