Local Politics

N.C. to pay interest on tardy tax refunds

Posted May 28, 2010

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— The state Department of Revenue will owe about 312,000 North Carolina taxpayers interest on their tax refunds because they won't be processed by the end of the month, officials said Friday.

The Revenue Department has already issued more than 2.4 million refunds, totaling more than $1.75 billion. Officials said about 99 percent of taxpayers who filed their 2009 taxes electronically have received their refunds, and 79 percent of taxpayers who filed paper returns have received their refunds.

The returns that were filed by April that still need to be processed total about $222 million in refunds owed by the state, officials said. Because the refunds won't meet the May 31 deadline set by state law, the state will begin paying interest on them at a 5 percent annual rate.

“We will continue to monitor refunds very closely and send them out each week as cash flow allows,” Revenue Secretary Ken Lay said in a statement. “Everyone who is due a refund will receive a refund as quickly as possible.”

Officials said North Carolina is among several states that have had to delay issuing tax refunds this year because of the recession’s effect on tax collections and cash flow. Others include Alabama, Kansas, Iowa, Hawaii and Rhode Island.

Last year, all refunds were issued by May 13.

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  • liskm May 28, 2010

    Haven't seen mine yet. Best be sure in the coming year, I will adjust accordingly and they won't SEE any OWED until the last skinny second!

  • Dreamin of Disney World May 28, 2010

    Filed in March..still waiting. What gets me is that I called in April and they told me it was being processed. Called the other day, and they told me it was "just received May 9th,", and that it was still being processed. When I told them of the earlier call I'd placed. She treated me like I was lying. State is playing fast & loose with our money. When I asked if I would be getting the 5% interest added to my refund being that it was painfully obvious I wasn't getting my refund on time. She rudely and loudly said "yes" and hung up.

  • BULLDOZER May 28, 2010

    How about penalties too, like they charge us if we are late?

  • Tax Man May 28, 2010

    When NC had record taxes paid in and had a $2 billion surplus they went and spent it all on pork barrel projects for special interests. They should keep a reserve of at least $5 billion so that this does not ever happen again. If they cannot pay you your refund within ten days of filing they should pay you the same penalties and interest you have to pay them if you are late! Shame on these politicians. We need to get them all out of office! Every last one of them.

  • Heather May 28, 2010

    We don't normally get refunds, typically we pay. This year we're expecting a rather large refund due to some last minute deductions we were able to claim. Fortunately for us it isn't money we rely on to get by. I can't imagine putting stock in a refund (which was your money to begin with).

  • Heather May 28, 2010

    My 19 year old is one of those who hasn't received her refund. However, if she doesn't have it, she can't spend it. Maybe it'll be late enough she can take it back to college in the Fall.

  • delilahk2000 May 28, 2010

    I BET THE INTEREST THEY PAY WILL NOT COME CLOSE TO WHAT THEY WOULD CHARGE YOU FOR PAYING LATE!!

  • mpheels May 28, 2010

    Exactly kawbkr, I don't get it either. I generally get a refund b/c I have a few deductions/credits that vary each year so it's hard to get withholding exactly right, but my state and federal refunds combined are usually less the $100. I'm happy if I'm within $100 either way. There will always be some cases of unexpected refunds, but I know a lot of people who intentionally pay more throughout the year so they can get a "bonus" each spring to pay for something fun. You're better off setting up a "fun" savings account with a small automatic transfer each pay period.

  • bottleworks May 28, 2010

    I'm one of those 300K people. I will be changing my W4.

  • kawbkr May 28, 2010

    I still do not understand why so many people look forward to some LARGE refund. Don't you guys get it? The government uses your money all year long and does not pay you one penny in interest. Adjust your with holding so you get back a small amount or owe just a little. You can use your money thru the year instead of letting the idiots in our government use it for free!!!!

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